Prime minister Marcel Ciolacu declared that next year no progressive salary tax will be applied, answering a question on Monday evening for the private broadcaster Antena 3.
„We have the highest labour taxation in Europe (…) because capital taxation is the lowest. Everywhere in the world, where you have cumulative income, not salary income, I have cumulative income. I have a salary, where I pay the tax – I put it aside. I have rent combined with salary, I have leases, I have…, they all add up in one basket and the moment you exceed certain amounts, anywhere in this world, you get a tax surplus, a kind of capital tax. I have exceptional income. I bought a plot of land on the outskirts of Bucharest for 1,000 euros and tomorrow I’m selling it for 10 million (euros, ed. n.). Everywhere in the world they don’t pay 10%, even if you sell it with 1,200, even if you sell it for 10 million. After certain thresholds, another taxation comes to you,” Marcel Ciolacu said.
He emphasized, compared to what was shown, that a progressive taxation on capital is correct and a fiscal reform is necessary.
„There is progressive taxation. A progressive taxation on capital, in this logical and correct logic, and with a decrease in the minimum wage for taxation as it is everywhere in Europe, but also with a legislation so that Romanians are not, one third, paid with the minimum wage. That if Ciolacu now decides with the Government to reduce taxation to the minimum wage on the economy, we will find that from one third we are two thirds with the minimum wage, because it is a fiscal optimization. So, this means that we have to make a fiscal reform. (…) The calculations are done by experts who are also from the World Bank… A fiscal reform (…) discussed for six months. It is passed in the National Recovery and Resilience Plan, in the request for payment number 4, but it will have effects, if you want, in my opinion, in 2026,” Ciolacu also declared.
The head of the Executive pointed out that a change in taxation cannot be discussed until the digitalization of the National Tax Administration Agency is implemented.
Source: AGERPRES
