It is never nice that you raise taxes: every time you give, your cow gives birth, when it is taken away, your calf dies, says Eugene Redulescu, former director of the Financial Stability Office of the BNR, saying that he is talking about eliminating tax disparities that they generated by populist measures.

Evgeny RadulescuPhoto: Inquam Photos / George Călin

According to him, revenue collection has a terrible problem: the system of taxes and fees has become truly Swiss.

“There are so many benefits, so many bonuses, so to speak, that some industries or some taxpayers enjoy, that there are several categories of people,” he said.

  • There are those who pay taxes, those who owe taxes and who pay them, and there are those who no longer owe.

Tools in IT, a mystery

“Some of these ‘tax amnesties’ are egregious and difficult to explain. It remains a mystery to me how the IT sector, which has the highest revenues in the economy, can benefit from the abolition of the income tax,” said Redulescu.

  • “How can this be? People who earn 2,000-3,000-4,000 euros per month do not pay income tax.”
  • “It’s never nice to raise taxes. Whenever you are given, the cow will give birth, whenever it is taken away, the calf will die. We are talking about eliminating the fiscal disparities that populist measures generate.”

“We keep hearing that the IT workers will leave. help? Where in the world do you think taxes are so low that any of them will disappear? I know of cases when people who work in IT for international companies stay in our country, where they pay almost no taxes,” Eugene Redulescu also noted.

  • “In Western Europe, they are subject to a blood tax. The idea that IT scientists will leave because they will find better-paying work abroad, I would also like to see that.”

It is not healthy that construction, agriculture and the food industry do not pay CASS: this is absurd

“I also find it quite unhealthy that some industries are eliminating CASS (construction, agriculture and food industry are not). What does it mean? “Several hundred thousand people who work in these industries receive health care at the expense of others,” he says.

He also stated: this is absurd. It’s ridiculous.

Incorrect VAT rates

“The VAT rate is 19%. In reality, the VAT rate in Romania is just over 14%. why Because we have a huge number of benefits, discounts and other benefits in relation to VAT, which are no longer available in other parts of the world”, – also confirmed Eugene Redulescu.

  • “It sucks: sports equipment has 5%. Has sports equipment become the most important thing?”
  • “We pay 19% for electricity, that’s right, and we pay 9% for water and sewage. It’s not fair.”

The tax regime of micro-enterprises: a miracle

“We have a miracle called: micro-enterprises. Well, micro-enterprises that have revenues of half a million euros and only one person can have 3 micro-enterprises, he can also have his wife 3 and his son 3, so that we reach incredible amounts of income that are not taxed,” he said.

Also, says Redulescu, we have a lot of people who are not employees: they are PFAs.

“Why? Workers pay 48% of taxes and fees, while others pay 10%, 12%, 15%. This is wrong,” he said.

  • “The first thing to do before raising taxes and duties is to cancel tax incentives. Tax benefits are undesirable. You have the impression that it helps. Don’t help.”