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January 27, 2022

Chitoiu: USL has discussed an over-tax on income, subject is now closed

The Government says the guaranteed minimum income will grow by 8.5 pc in July and 4.5 per cent in 2014.

Deputy Prime Minister and Finance Minister Daniel Chitoiu admitted on Saturday that, at the end of 2012, the ruling coalition had discussed an over-tax on income, including the private sector, but said that, since an agreement could not be reached in USL, the subject was closed. Asked if at any time the authorities had considered an over-tax exclusively for the public sector, Chitoiu said: ‘Yes, we did discuss it’. ‘At the end of last year we did talk about it, but, since then, we haven’t discussed it or made any calculations or analyses,’ Chitoiu noted.

Asked if an over-tax on income for the private sector had been considered, the minister answered: ‘Yes, but we discussed about an over-tax applicable to anyone who obtains an income, without setting the maximum threshold at the time. It is the gross or net figure, over EUR 1,000.’ Chitoiu said that USL had not made a political decision on introducing an over-tax for anyone who makes an income. ‘The USL Government applies the ruling programme approved by the Parliament. All public and economic policies are made by political decisions in USL. No political decision could be made in USL to be able to implement a project like that,’ Chitoiu said. At the same time, the guaranteed minimum income will grow by an average of 8.5 per cent in July and 4.5 per cent on January 1, 2014, the budgetary effort required for the rise as well as for increasing the family support allowance being estimated at about RON 200 M in H2. The family support allowance will be increased in one step. The amount necessary for increasing social welfare benefits will come from the tax applied to energy producers on additional revenue they obtain from the liberalisation of prices. ‘There will be a gradual price liberalization in the energy sector, and the most effective way to protect vulnerable consumers is to increase social benefits,’ said Minister Delegate for the Budget Liviu Voinea.

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