Romania’s ruling coalition, made up of the Social Democratic
\nParty, the National Liberal Party and the Democratic Union of Ethnic Hungarians
\nin Romania (UDMR), is to submit the draft budget law for 2022 to Parliament by December
\n20, for discussion and endorsement. The 3 parties intend to have the
\nfiscal-budgetary strategy passed by Christmas.<\/p>\n
<\/p>\n
\n
<\/p>\n
The law
\nmust provide funding for investments, the increase of public pensions and
\nallowances, while at the same time keeping the budget deficit under control. <\/p>\n
<\/p>\n
\n
<\/p>\n
The idea of
\nintroducing new taxes has triggered debates in the new ruling coalition. The Liberals
\nonce again emphasised that next year’s budget will not be based on new taxes. However,
\nthe Social Democrats and UDMR sought to levy an additional 1% of turnover tax
\non companies with turnover in excess of 100 million euro. According to UDMR,
\nthe money would cover healthcare and education investment needs, but the
\nbusiness community voiced discontent with the measure.<\/p>\n
<\/p>\n
\n
<\/p>\n
The Liberal
\npresident Florin C\u00ee\u0163u mentioned that these companies paid taxes in advance last
\nApril, when the economy was shut down, and argued that it is not fair for the
\nsame businesses to be penalised. <\/p>\n
<\/p>\n
\n
<\/p>\n
In turn, PM
\nNicolae Ciuc\u0103 promised there will be no such taxes. This is precisely what we
\npledged in the governing platform, namely that no such tax will be levied this
\nyear. The governing plan was endorsed by Parliament and it will be applied as
\nsuch,\u02ee Nicolae Ciuc\u0103 pointed out. <\/p>\n
<\/p>\n
\n
<\/p>\n
The finance
\nminister Adrian C\u00e2ciu said in turn that the budget will not include new taxes,
\nand that any change in the tax system will be predictable and operated after talks
\nwith private businesses. He said Romania needs solidarity now, to protect
\nlow-income citizens from price rises, especially in the energy sector. We will
\nachieve this by stimulating the economy and encouraging the companies that
\nproduce in Romania, regardless of their ownership, because all that is produced
\nin Romania is produced by Romanian employees. A product made in Romania means
\njobs for Romanians. By supporting Romanian producers, we provide guarantees that
\nhundreds of thousands of people will have stable, safe jobs, the finance
\nminister Adrian C\u00e2ciu explained. <\/p>\n
<\/p>\n
\n
<\/p>\n
In turn,
\nthe Social Democratic leader Marcel Ciolacu said that should the coalition
\ndecide to introduce a new tax, this will not take effect sooner than in 6
\nmonths’ time. On the other hand, he said the country has major problems in
\nterms of tax evasion and VAT collection. Romania is estimated to have tax
\nevasion accounting for 10% of GDP at the moment. Moreover, 34% of the VAT owed
\nis not collected,\u02ee Marcel Ciolacu warned. (tr. A.M. Popescu)<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
The ruling coalition is to finalise the draft state budget for next year<\/p>\n","protected":false},"author":46,"featured_media":83861,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29547,32811,33361,29721,29268,32738,34297,39673],"coauthors":[],"class_list":["post-90604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-budget","tag-deficit","tag-draft","tag-law","tag-parliament","tag-public","tag-tax","tag-turnover"],"acf":[],"yoast_head":"\n