The Constitutional Court ruled on Tuesday that the Law on the new system of taxation of service pensions, which provides for the taxation of 85% of pensions exceeding the amount of 7,000 lei, is unconstitutional.
According to a CCR release, the decision was taken unanimously by votes, the law being declared unconstitutional as a whole.
On June 17, the Chamber of Deputies voted to amend and supplement Law 227/2015 on the Fiscal Code, which has as object of regulation the establishment of an income tax and allowances for the age limit.
According to an amendment, pensions with a value of up to 2,000 lei included are not taxed, those between 2,000 and 7,000 are taxed with 10%, and pensions over 7,001 lei are taxed with 85% of the exceeding amount.
The amendment voted by the Chamber of Deputies was appealed to the Constitutional Court by the High Court of Cassation and Justice and the Ombudsman.
USR PLUS: Games in Parliament, finalized at CCR – special pensions not to be taxed
The Save Romania Union – Party of Liberty, Unity and Solidarity (USR PLUS) Alliance claims that the “games in Parliament” on the taxation of special pensions “were finalized by Romania’s Constitutional Court (CCR) by Tuesday’s unconstitutionality decision, which makes these revenues not disappear, “at least still a while from now on”.
“This decision makes ‘special’ pensioners such as Valer Dorneanu, Mona Pivniceru and others like them still receive their special pensions hundreds of times higher than those of ordinary Romanians. We expect the motivation of Romania’s Constitutional Court (CCR), but we remind you that USR MPs warned, before the final vote in Parliament, that there is a major risk that the draft law on the taxation of special pensions will be, in the form agreed by Social Democratic Party (PSD) and National Liberal Party (PNL), unconstitutional,” reads a USR PLUS release sent to AGERPRES.
According to USR PLUS, in the meeting of the Chamber of Deputies on June 17, PSD and PNL decided to “leave in the drawers of the Parliament” the USR project on the taxation of special pensions, agreeing to vote on the Social Democrats’ project and to submit it to the vote on June 18 in a joint sitting of the Senate and the Chamber of Deputies.