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December 9, 2022

Parliament passes bill providing for the 85% taxation of special pensions. Iohannis: Measure that needs thorough judgement

Voting on the provisions of a law supplementing Law 227/2015 regarding the Tax Code in relation with allowances for the age limit provided by Law 96/2006 on the statutes of the lawmakers at a joint plenary session on Thursday, Parliament decided that state pensions of Romania’s lawmakers over 7,001 lei will be taxed at 85% the amount in excess.

The bill passed 354 to one abstention and 43 present.

At a plenary session on Wednesday, the Chamber of Deputies passed, 307 to 1, a bill amending and supplementing Law 227/2015 on the Tax Code regulating taxation of old-age income and allowances, but the standing bureaus decided at a joint sitting on Thursday to reintroduce the item on the agenda of the joint plenary session, the reason being related to the pensions of lawmakers.

Save Romania Union (USR) requested that the item be removed from the agenda, on the grounds of possible unconstitutionality, because Parliament does not vote on “provisions”, but bills. The proposal was rejected by 276 lawmakers.

The bill, adopted by the Senate in 2019, was supported in the plenary sitting by all parliamentary groups and introduces the notion of “tax on income from pensions and old-age allowances.”

According to a joint amendment of the Social Democratic Party (PSD), the National Liberal Party (PNL) and the Save Romania Union (USR), state pensions of up to and including 2,000 lei are tax exempt, those between 2,000 and 7,000 are taxed 10% the difference between 2,000 lei and the actual pension, while state pensions in excess of 7,001 lei are taxed 85% of what exceeds the amount of 7,001 lei.


Iohannis: Measure that needs thorough judgement


The law providing for the 85% taxation of special pensions has in view “a measure that needs thorough judgement,” President Klaus Iohannis said on Thursday.

“Basically, it is a measure that needs thorough judgement. When I get it, I will voice an opinion then, as I want to read in detail before making a public statement, but I insist on reminding everyone in this context that we, several years ago in fact, introduced the taxation on global income as a social equity measure, after it was discarded for obviously electoral reasons. I believe it is a bit wider discussion and after I check this law, I will make more statements,” Iohannis said.

He was also asked about other laws that were sent to him for promulgation, including the one that amends and adds the National Education Law, one of the amendments mentioning that, in educational units and in the spaces destined for vocational education and training, “there are forbidden the activities meant to spread the theory or opinion of gender identity understood as the theory or opinion that gender is a different concept from biological sex and that the two are not always the same.”

“I think you have found out from sources what I will do with the gender identity law, but I will comment when I make the relevant act and with the other laws I will comment on them when I have a decision made and you will then find out from me, but the term is far enough to give a promulgation or a re-examination or a referral to the Court and I will then make the remarks in an appropriate framework,” the head of state pointed out, according to Agerpres.

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