Prime minister Marcel Ciolacu, chairman of the Social Democratic Party (PSD), said on Monday that as of September 1, with the recalculation of pensions, the 2,000 RON threshold above which pensions are taxed will be changed.

Ciolacu was asked on private broadcaster Realitatea Plus if the analysis on the taxation of pensions above 2,000 RON has been done and if these pensions will be taxed.

„At some point someone decided, on certain indicators, that above the 2,000 ceiling there would be a tax. In the meantime we know very well that the standard of living has increased, there have been certain indexations, so, in other words, there has to be a correction to the ceiling so that the reference to the purchasing power of the 2,000 RON … You have to do a new reporting, to see what is nominally the threshold where it starts to increase. It is normal to change this threshold at the same time as the recalculation of pensions,” said prime minister Ciolacu.

Currently, pensions below 2,000 RON are not taxed. The tax is 10% of the difference exceeding 2,000 RON. For example, a pension of 2,800 RON is taxed at 80 RON.

AGERPRES