Romanian Waiters in Crosshairs as Tips Tax Seen Stoking Budget

Romania’s government is targeting tips to help to bolster state coffers.

The Finance Ministry wants to make companies such as restaurants charge a 16 percent flat tax on tips by either including them in profit or as extra employee income, according to a draft law posted Thursday on its website.

“We seek to define the term ‘tip’ by including it as revenue on the invoice in order to clearly differentiate it from other types of revenue,” the ministry said.

Romania, already cracking down on fiscal fraud, is trying to offset a decline in state revenue as Prime Minister Victor Ponta plans to lower the value-added tax in June. The cabinet wants to maintain this year’s budget gap at 1.8 percent of gross domestic product.

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