Interim chairperson of the Social Democratic Party (PSD) Sorin Grindeanu said Wednesday in Curtea de Arges, that if the progressive tax would be implemented, there would be no need to increase VAT.
„There are some recommendations from the international financial institutions, even from the [European, editor’s note] Commission, please take a look at what the IMF said two or three days ago, the IMF recommendation to have progressive tax in Romania. It is a recommendation made by the World Bank, the IMF and the European Commission. (…) There are 27 countries in the EU, only four have remained with this type of taxation tht we have, Romania, Bulgaria, Hungary and Estonia. The rest, all have this progressive tax. That is, from a certain rate upwards, for high incomes, that is why we don’t want to touch low incomes, to have extra-taxation. This is progressive taxation. Not for people with low and medium incomes,” Grindeanu said.
He added that if this measure were implemented there would be no need to increase VAT.
„We could apply from January 1, let’s say, from an income above 12,000 RON, the impact on a 20% tax on what exceeds 12,000, brings us an extra income of about 12 billion. We need a buffer of several months to be able to apply this progressive tax. Until January 1 we can discuss the solidarity tax, which, in fact, is also a progressive tax, for those with high and very high incomes,” said Sorin Grindeanu.
In relation to these measures, he added that „these are things that sooner or later we will apply”.
The PSD leader emphasized that he does not agree with income cuts for low and middle income earners.
„We, as a party, will not agree to cut incomes for people with low and medium incomes. PSD cannot and will not do this! I have seen all kinds of projections, let me not comment on them. When we come to an agreement we will communicate it. I emphasize, we will not be able to agree, for example, to levy CASS [tax on health insurance, editor’s note] on small or medium pensions, to tax more those who have low or medium incomes, to cut various things that do not bring a big plus to the budget,” Grindeanu said.
He added that PSD does not support taxing banking transactions.
„I don’t know who came up with the proposal,” told the press the social democrat Sorin Grindeanu, who, in his capacity of Transport minister visited the construction site of section 5 of the Sibiu-Pitesti motorway on Wednesday.
AGERPRES
