The National Trade Union Bloc (BNS) and the 29 affiliated federations demand an urgent fiscal reform, in the conditions in which Romania builds its budget revenues on taxes on goods and services, especially VAT, and on social contributions paid almost entirely by employees, the trade union organization’s representatives claim.

According to a press release from the BNS, sent to AGERPRES on Friday, the two categories provide 76% of the total tax revenues of the general consolidated budget.

„In the context of the protest that we will organize on Monday, May 13, 2024, in front of the Government of Romania, under the slogan ‘Respect for work and those who work! Workers in Romania no longer want to be Guinea pigs of fiscal experiments!’, the National Trade Union Bloc draws attention on the fiscal system in Romania, the situation of which is alarming and requires immediate attention,” the trade unionists say.

According to the source, in 2023, the share of tax revenues in GDP was only 27.1%, well below the European Union average which was 40.4% in the same period. In the opinion of the union leaders, the situation is due, on the one hand, to a deficient arrangement of the tax system and, on the other hand, to chronic tax evasion.

The trade unionists claim that dividends, interests, and royalties also have a preferential treatment, being among the lowest in Europe.

„Our country builds its budget revenues on taxes on goods and services (especially VAT) and on social contributions (almost fully paid by employees). The 2 categories provide 76% of the total tax revenues of the general consolidated budget! Regardless of the level of revenues obtained or the level of well-being, Romania taxes the same. It is one of the very few member states of the European Union that has the same effective tax rate, both for incomes from work equal to the average salary, and for incomes twice as high as the average salary,” the quoted source mentions.

AGERPRES