Prime Minister Victor Ponta has hailed once more the political consensus reached over the Fiscal Code, adding that to him and the Government he runs an agreement on a general 20-percent Value-Added Tax (VAT) was essential.
“I am glad in the first place that there is political consensus, because it is very important for a Fiscal Code not to make the object of political battle. (…) It is good that [consensus] was reached and I hail the peace, so to speak. Secondly, to me and the Government, the 20 percent VAT level was essential, from the economic, social and political point of view, to be very honest. This way, each and every one, absolutely all [promises are kept], this was the last of the election campaign promises, of the Government’s programme in 2012 that we meet. A general 20 percent [VAT] with 9 percent for foodstuffs, we reach around 16 percent average VAT. Therefore, it is better than in 2010, when it went up from 19 percent to 24 percent,” Ponta said in Tulcea, on Friday, where he had an informal meeting with the ministers of his Cabinet.
Ponta also said that “the philosophy of the new Code is a philosophy supporting the business environment and the creation of jobs.”
“It is also very good to have it in force starting on January 1. There were also a few measures that are postponed, depending on the money situation we can implement them sooner or starting January 1, 2017,” the prime minister also said.
“We didn’t cut any money from anyone, this makes a key difference in comparison with the former Gov’t”
Prime Minister Victor Ponta said on Friday that the public sector pay law will enter parliamentary debate and will be completed as soon as the new Tax Code comes in force.
“As soon as the Fiscal Code comes into effect we will also have the official calculations, that is we are able to perform them for 2016. These two elements are equally essential for the pay law, but in this specific order. In the first place, and this is where Labor Minister, Mrs. Plumb has been making efforts and will continue to do so until we reach an acceptable solution, we must lay out the principles: how to pay the employees, how many increments there will be, let there be order, because there’s chaos now. The second aspect related to the financial package is how long do we need to attain the envisaged goal, because in no case, nobody ever said that next year beginning with January 1, everyone will get much higher wages. This cannot be, it depends on the budget space, but a segmentation can be done, spanning three to four years,” the Premier said in Tulcea, where he had an informal meeting with the ministers of his Cabinet.
According to Ponta, the Government will end its term without having cut “a single dime from any chapter,” pensions or salaries.
“This Government will end its term, I’d say in December 2016 or whenever this happens, with this one accomplishment: we didn’t cut any money from anyone, neither pensions nor wages. We have always made disbursements. Maybe we didn’t offer enough, but it’s never enough, maybe we didn’t give everybody, I’m sorry, we are trying to, but we definitely didn’t cut one dime from anyone. In comparison with the former Government, I think this makes a key difference,” said the Premier.