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April 15, 2021
BUSINESS

PSD comes up with 24 anti-crisis solutions

PSD is proposing an action plan that contains 24 anti-crisis measures that include the reduction of the VAT on bread, unprocessed chicken meat and milk and the payment of the VAT when cashing-in the bill. The document was presented on Monday by PSD President Mircea Geoana. According to the document, the reduction of the VAT on bread and unprocessed chicken meat and milk seeks to offer social protection to the poorest of the Romanians, the measure set to be doubled by a control mechanism that will see to it that the VAT cut will be reflected in a price cut and not in the hiking of profits. Geoana did not say by how much the VAT for these food stuffs would be cut. Another measure proposed through PSD’s action plan is the reduction by 30 per cent of the energy bill for household consumers, depending on their incomes, but also for the economic agents affected by the economic crisis. Mircea Geoana has pointed out that this measure would be applied during a six-month period starting on September 1. The measure would be applied by hiking the share of the internally-produced natural gas to 90 per cent of the consumer basket and the share of the electric energy to 50 per cent. PSD also proposes the elimination of the minimum tax on turnover, a tax that minister of Economy, Adriean Videanu, said, yesterday at Romanian-Italian Forum, is a huge error, because the fiscal policy must have not just a collecting role, but also a role for economy’s stimulation. The introduction of this measure sought to hike the budget revenues by 0.25 per cent but the goal was not achieved, with the ‘hypothetical’ revenues for 2009 being of RON 150 M according to the Ministry of Finance data. An impact study done by the Finance Ministry estimates that about 102,000 companies that had an average turnover of EUR 200 per month in 2008 might be forced to cease activity after the introduction of the minimum tax, while total earnings expected until 2012 amount to RON 4.2 bln. PSD is also proposing the creation of a National Housing Fund that would finance the construction of 50,000 fully equipped houses set to be rented, with the guarantees being offered through the Fund of Guarantees for SMEs.

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