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January 27, 2023
BUSINESS

PM Ponta invites all interested in the draft Tax Code to come up with proposals to improve it

Prime Minister Victor Ponta on Friday invited all the people interested in the draft Tax Code to come up with actual proposals to improve the code, saying that he is convinced most of the things that need righting will be righted after the draft travels from the Government to the President via Parliament.

“I want to make a remark (…) that is why I set 30 days, so that Mr Valcov , the Finance minister may get all the proposals. This is in no way a perfect code; only God could have made a perfect draft of the code. After we pass it in the Government next month, that is in 30 days’ time, it will reach the Senate for debate and a vote and then on to the Chamber of Deputies for their debate and vote. I want to ask you to please address your proposals to the Finance Ministry and if you see that the ministry ignores them, you will send them to me as well. If I ignore them myself, you will be sending them to the Senate, because they are good and important things. And if they cannot be done, at least you would get an explanation,” Ponta told a videoconference with local representatives of trade unions and employers’ organisations for the release of a yearbook called “2014 in the context of the National Social Dialogue.”

Ponta added that everyone involved in the debate on the Tax Code should voice their opinions, because “in the end, the Tax Code will affect everybody, not just small and medium entrepreneurs, but all the citizens of the country, I believe.”

“You should use the time to produce actual proposals and I am sure that at the three stages – Government, Senate, Chamber of Deputies – and even in the 4th stage- when the draft reaches the President for promulgation – we will right most of the things that need righting,” added Ponta.

Ponta made the remarks in response to a request from Deputy Chairman of the National SMEs Council Neculai Vitelaru.

Vitelaru pointed to the cooperation on the draft Tax Code with the Finance Ministry, adding that there are aspects that still have to be improved.

“We want a SME test and impact study to be applied. (…) So we need discernment, because the rate of SMEs per 1,000 inhabitants is just 22, smaller than the EU average of 65. My request is to apply the SME test and the impact study,” said the representative of SMEs.

Releasing the yearbook called “2014 in the context of the National Social Dialogue” was Minister-delegate for Social Dialogue Liviu Pop. Also attending was Minister of European Funds Eugen Teodorovici.

 

Opposing the fiscal reforms proposed by the Gov’t, the Liberals are, in fact, conservatives, says Ponta

 

Prime Minister Victor Ponta said on Friday that the National Liberal Party (PNL)  is against the fiscal-economic reforms proposed by the governing coalition, a thing that he said proves the liberals are, in fact, conservatives.

‘The PNL is against the fiscal-economic reforms proposed by us! It is for the first time that it is obvious – conservatives, not liberals!’, the Social Democrat prime minister wrote on his Twitter page.

PNL senior vice president Catalin Predoiu said earlier in the day that the fiscal relaxation cannot be applied before first improving the collecting mechanism and stressed the measures announced by Ponta are solely aimed at ‘scorching the earth in front of the political enemy’.

 

Finance Minister: All people receiving royalties to benefit from increase in monthly incomes

 

Writers, journalists, actors, painters, architects and all people receiving royalties will benefit from an increase in their monthly income, due to the reduction in taxation, Finance Minister Darius Valcov has written on his Facebook page.

The official has posted on his Facebook page a comparison between the payment obligations related to royalties for 2015, 2016 and 2017 based on the proposed amendments in the new draft Tax Code.

The data, which refer to the people who in 2015 have incomes only from royalties show that those who have earned in 2015 a monthly income of 1,000 lei, in 2016 will have an additional income of 54 lei, due to the decrease in total payment obligations, from 236 to 181.92 lei. In 2017, the additional income will be 70 lei.

The tax relief plan for the period 2016 to 2020 stipulates that the VAT will go down to 18 percent in 2020 from 24 percent in 2015, the flat tax will be cut from 16 percent to 14 percent, the dividend tax, currently at 16 percent, will be written off, the special construction charge will be eliminated (currently at 1 percent), social security contributions will decrease from 15.8 percent to 13.5 percent for the employee and from 10.5 percent to 7. 5 percent for the employer, and the tax on micro-enterprises and local taxes and fees will have a differentiated regime.

According to estimates of the relevant ministry, the tax relief measures will lead to the creation of 82,000 new jobs in 2017, 69,000 jobs in 2018, and 50,000 jobs in 2019, whereas the positive impact on economic growth will be 0.6 percent of GDP in 2017, 0.7 percent in 2018 and 0.5 percent in 2019.

 

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