Undisturbed by the street protests staged in Bucharest,
\nthe Romanian Government adopted on Wednesday the so called ‘fiscal revolution’,
\nconsisting in measures that have made many people unhappy, including trade
\nunions, businesses and mayors of big cities. Romania’s president Klaus Iohannis
\nhas also criticised the decree. <\/p>\n
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According to the new, amended Fiscal Code, as of
\n2018, all social security contributions will have to be paid by employees, and
\nthe income tax will drop from 16 to 10%. Also, companies will have to pay a
\ncontribution of 2.25% of the total salary fund. Other measures are aimed at
\npreventing multi-national companies from taking profits out of the country.
\nAlso, contributions to the second pillar of the private pension fund have been
\nreduced, from 5.1 to 3.75%. At the same time, as of July 1st next
\nyear, the minimum pension will increase by 26 Euro, and the pension point will
\ngrow by 22 Euro. <\/p>\n
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Despite general opposition to these amendments, the
\nFinance Minister Ionut Misa claims that the measures will benefit significantly
\nboth citizens and businesses. Ionut Misa:<\/p>\n
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One of the measures is aimed at lowering the income
\ntax from 16 to 10%. Also, social security contributions will drop by 2%, and
\nthe payment of such contributions will become employees’ responsibility. All
\nthese measures, aggregated, will translate into an increase in the employees’
\nnet incomes, without forcing employers to pay more to the state budget.
\nContributions to the pensions fund will grow, and therefore people will benefit
\nfrom higher pensions upon retirement. <\/p>\n
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Prime Minister Mihai Tudose says that some of the
\nmeasures included in the new Code will bring more money to the state budget,
\nwhich will be spent on education, health and infrastructure. Tudose believes
\nthat the new fiscal measures are a matter of discontent for multi-nationals,
\nwhich have in turned fuelled that of the public opinion. The liberal
\nopposition, on the other hand, has harshly criticised the changes to the Fiscal
\nCode. Here is the Liberal senator Florin Catu:<\/p>\n
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We must all stand against this, because we can
\nalready see the effects: interest rates have gone up, the national currency has
\nbeen growing weaker for ten months now, with a big drop yesterday, inflation is
\non the rise, and the signals that we get from the Central Bank are worrying.<\/p>\n
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The Liberals have announced they will file a
\nno-confidence motion against the Government made up by the Social Democratic
\nParty and the Alliance of Liberals and Democrats in Romania. In turn, all big
\ntrade-union confederations have stressed that these changes will in reality
\nlower people’s incomes and have announced that protests will continue across
\nthe country. They will also call on the Ombudsman to help block the
\nincriminated decree. <\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The Romanian Government has adopted, under an emergency decree, a set of amendments to the Fiscal Code, which are due to come into force in 2018.<\/p>\n","protected":false},"author":46,"featured_media":75428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29189,116464],"coauthors":[],"class_list":["post-75427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-fiscal-code","tag-romania-en"],"acf":[],"yoast_head":"\n