The transfer of contributions from the employer to the employee is applied to reduce the very large deficit in the pension area, from 18 billion lei in 2015 to 7 billion lei this year, Minister of Public Finance Eugen Teodorovici told the public television station on Tuesday evening.
“The main argument [of shifting contributions from employer to employee] is that the deficit in the pension area, which is very high in past years, will be significantly reduced. In 2015, the pension deficit was 18 billion lei, and now it is reducing to 7 billion lei this year, which means a very, very big difference. Also, the fear of the employee being at risk of not having a pension after the payment of contributions will disappear,” Teodorovici said.
Asked why there is a need for frequent changes to the tax system, the minister of finance said that Romania is in good fiscal position, regionally and locally, but the system needs to be simplified, de-bureaucratised.
“We want an aggressive simplification [of the fiscal system] in the good sense. All taxpayers have to expect good things in terms of the budget-fiscal area. We will not have new taxes etc this year. Next month you will see many such measures that will be very, very well received by both the business milieu and individuals. Romania, in the local and regional context, is in a good fiscal position. Simplification is needed. For example, for every envelope that tax authorities send, they pay about 3 lei and something per operation, so we have 10 million euros a year. There will be clear simplification actions. The Form 600 disappears and out of five approaches only one will be left, it will be an online version, simple to fill in, without any other problem or complications, including the 2% transfer to an NGO. In this single form there will be a section devoted to the possibility of transferring two percent to NGOs,” explained the official.
“State should encourage work, all public spending must be checked”
All the public spending must be checked, and in the second half of the year we shall provide a report on it, because the state should encourage work and not the lack of it, on Tuesday night said the Public Finance Minister Eugen Teodorovici, at the TVR public TV channel.
“We talk about 1.2 million of employees in the public sector. We should analyse all the public spending. We will provide a report in the second half of the year. Unfortunately, this is a state of facts when it is better to work for the state than for the private sector. And yet, each and every one must prove what they do. By making the acquisitions in a centralised manner, the budget spending could be slashed. The state must encourage work, not the lack of it, which demands a lot of measures through which we make the person do something for the money they receive from the state as social aid, for instance,” Teodorovici said.
According to the Finance Minister, the introduction of the household tax or global tax will not be considered this year.
“We must learn to talk less and only communicate things when are very clear.This year we don’t consider the global or household tax. Those who are now crying are the same who cut (incomes, ed. n.) in the past. Let’s talk about solutions and leave the bad cards. Regardless of the side of the political spectrum we place ourselves, left or right, our common goal is the welfare of the Romanians,” Eugen Teodorovici stressed