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June 28, 2022

PSD- PNL, divergent opinions over the wealth taxation

PSD’s Ciolacu: Those holding impressive villas will not suffer excessively if tax increases by few percent

The chairman of the Social Democratic Party (PSD), Marcel Ciolacu, stated, on Thursday, that persons holding “impressive villas with pools”, who can afford a yacht and annually change luxury limousines will not suffer “too much” due to the increase, by a few percent, of income tax.

“I have formulated before the start of negotiations for the new Government a simple principle: higher taxes for the wealthy and benefits for those with average and reduced income. Those who hold impressive villas with pools, who can afford a yacht and change luxury limousines each year will not suffer too much from the increase by a few percent of the tax. On the other hand, in the case of employees with low wages in private companies, increasing income – not just through increasing the minimum wage, which is mandatory – including through a system of deductions for families with children could bring an additional 3-400 RON monthly. And for families where each of the parents earns around 2,500 RON after tax, this extra money counts,” wrote Ciolacu, on Facebook.

He added that this simple system of deductions could generate an income increase for 85 pct of employees with a “marginal” budget impact not exceeding 0.2 pct of the GDP.


Citu : We don’t agree the additional taxation of Romanians who work and have accumulated assets


The National Liberal Party (PNL) does not agree with the additional taxation of Romanians who work and have accumulated assets, stated, on Wednesday, the chairman of the party, Florin Citu, mentioning that he will also not abdicate from the announced principle of not raising taxes and that he will oppose the increase of pensions and salaries if they fit into the budget deficit next year.

“In Romania any income is already taxed, this is about whether we want to penalize someone for having in life, for working and accumulating assets, or if we want to penalize additionally. I don’t find this normal. Oh, if we are speaking of tax evasion, I agree with eliminating tax evasion, but I don’t agree with coming to Romanians who are working, taking risks, investing and have paid their taxes and telling them later that something else needs to be paid because this is social justice. I don’t agree with that, but we agree with the elimination of tax evasion at any level, at the lower and at the higher,” said Citu after Wednesday’s negotiations for the governing programme.

He said that he does not agree with increasing taxes and with changing the principle of allotment of resources to investments.

“At the same time, the paradigm shift by which we allotted several resources towards investments helped us have greater resources in the budget this year, 40 billion RON more than last year, and with this additional resources we could both pay the bills this winter, and subsidize heating to UATs [Territorial-Administrative Units]. So it’s an economic model that works and I don’t think anyone today, after the model was vouched and received the approval of rating agencies, would want to change. It would be, from our point of view, an error,” added the PNL leader.

“We can put in the cards increased spending on pensions, salaries and look if they fit within the estimated deficit for next year. If they don’t fit, we have a solution of taking money from investments and here we won’t agree to take money from investments, but we agree with increasing pensions. We already have in the governing programme a pension increase of 5 pct for next year, we can see if we can go higher. We are not opposing,” added the interim PM.

In his opinion, surely a solution will be found in Parliament regarding the abolition of the Department for Investigating Crimes in Justice. “I don’t see an impasse here, but the solution is being worked upon,” explained Florin Citu, according to Agerpres.

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