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October 25, 2020

PSD Senator Eugen Teodorovici: FinMin Ionut Misa must be urgently dismissed

PSD’s Eugen Teodorovici, Chairman of the Senate Committee on Budget and Finances, stated on Monday that Finance Minister Ionut Misa (photo) “must be urgently reshuffled” for the statements he made about the solidarity tax.

“I too will criticise the incumbent Finance Minister. I believe – and I hope – today is his last visit to Parliament as Finance Minister, because I find it normal and fair for the party – and particularly the Prime Minister – to have his proposed dismissal on the table because, unfortunately, to make such statements as Finance Minister, statements that are then contradicted by the Prime Minister… I don’t believe that’s needed,” PSD Senator Eugen Teodorovici told Digi24 private broadcaster.

Asked whether his opinion is shared by other PSD members too, Teodorovici, who was Finance Minister in the Ponta Government, said that “there are probably many colleagues who feel it, believe it, and are convinced this is how it should be.”

“If you look in history a bit, not very far back, roughly everything I said came to be, from the measures taken early this year, with that famous solidarity tax, that turnover tax, and many, many, many others. If you give me an example of one that was made opposite of what I said, then I’ll no longer stand before the camera. As Finance Minister you can’t act this way,” Teodorovici added.

Asked how would he vote if a simple motion were to be tabled against Minister Ionut Misca, the PSD Senator avoided giving a clear answer. “If such a motion arrives in the Senate, (…) we will discuss it at that moment. But I’ve told you now, live: I believe Mr Misa must be urgently dismissed,” Teodorovici said.

“In contrast to all PSD colleagues, who worked in the campaign, and all those who were members of PSD Governments and did good things for which people voted us, Mr Misa is not even party member, I believe, he wasn’t by our side in the campaign and, given what he is doing today, he’s only doing disservices to us,” Teodorovici added.

The former Social Democratic minister also mentioned the hiking of fuel excises, which occurred even though the committee he chairs opposed it.

“In the case of the excise, I believe that by the end of the year it would be very important for the political factor, especially our ruling party and ALDE, of course, to carry out an analysis, and I hope with all my heart that such a measure, that cannot bring any benefit for the Romanian economy, would be given up. We’re looking at the countries around, which already have much cheaper fuel, which very clearly shows it wasn’t a logical measure,” Teodorovici stated.

Asked whether he presented his arguments to Premier Mihai Tudose and PSD President Liviu Dragnea, the PSD Senator answered: “During the ten days I was honorary aide, I presented Prime Minister Tudose with several things, it’s just that, unfortunately, as you know, he very clearly said our thoughts do not really converge. Meaning he disagrees with my ideas, so I don’t have the pretence that he should understand what I’m explaining to him. Or, if he wants to understand, he can summon me, we can discuss, I can argue and justify what I’m saying.”

Finance Minister Ionut Misa stated last Thursday that the 2 percent solidarity tax will form an insurance fund for the employee in case the employer becomes insolvent. However, 90 percent of this tax would go to the state budget, according to the minister.


FinMin Misa: Split VAT will place taxpayers on equal footing


Applying the split Value-Added Tax (VAT) payment mechanism will place taxpayers on an equal footing, while eliminating unfair competition, Minister of Public Finance Ionut Misa told a Government Question Time in Parliament on Monday.

“The taxpayers currently paying their due VAT into the national budget will thus be at an advantage as that will eliminate or significantly reduce unfair competition from other taxpayers who do not pay their dues and debts to the government and use the VAT resources for other purposes, thus being in a favorable position against other taxpayers who have a fair fiscal behaviour. As a consequence of the application of this mechanism, the taxpayers will actually be placed on an equal footing as unfair competition is eliminated along with the unfair advantages obtained by some of them through incorrect use of VAT revenue,” Misa said.

He mentioned that the bill does not include increases in rates and taxes, does not modify terms and procedures regarding the reporting obligations.

According to Misa, the total volume of non-recoverable VAT arrears from taxpayers undergoing insolvency proceedings: 7,239 insolvent taxpayers, 1,513 taxpayers undergoing reorganisation and 20,968 bankrupt taxpayers as of September 30, 2017, the sum totaling – is standing at 7.1 billion lei. Of this amount, 5.94 billion lei represents VAT arrears from 3,779 insolvent taxpayers who do not have assets and whose liabilities are due to creditors; 1.95 billion lei are due by 737 taxpayers undergoing reorganisation procedures; and 3.72 billion lei are due by 12,809 taxpayers undergoing bankruptcy proceedings.

Misa said that the reclaiming of the VAT arrears from insolvent taxpayers should yield 7.1 billion lei, while the reclaiming of VAT arrears from taxpayers preceding their being declared bankrupted should yield 0.26 billion lei in uncertain VAT, which should give 7.36 billion lei in all.

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