Prime Minister Marcel Čolaku says there will be no austerity, in fact there will be wage increases, and by the end of the month the government will take responsibility in parliament for a package of fiscal measures that “no one will miss overnight”.

Prime Minister Marcel CholakuPhoto: Inquam Photos / George Călin

Cholaku made these statements on Tuesday after visiting the Otopeni factory of the Philip Morris cigarette company.

We continue to “write” the regulatory act

Asked about the status of the fiscal package, Çolaku said that in “two to three days” it will be finalized and by the end of this month the government will proceed to a vote in parliament:

  • “We continue to write (sic) the regulatory act. By the end of the month, we will complete the whole cycle, including the assumption of responsibility in Parliament, and see if certain decrees are still needed to complete (…)
  • The first will be the completed anti-evasion package, then the reform of the administrative system, and the third – the fiscal package.”

Marcel Cholaku claimed that there will be no austerity, in fact salaries will be increased:

  • “I waited and talked about the so-called savings, but I saw in the regulatory act that salaries will increase, but there is no savings (…) Indeed, those who have very high salaries in the budget system cannot use vouchers. as well as the nearly 1.6 million Romanians who earn the minimum wage in the economy. But I didn’t see anything austerity.”

He specified that officials whose minimum salary exceeds 8,000 lei will no longer have the benefits of vouchers.

Cholaku also stated that all fiscal measures will be publicly transparent, that “everything will be as transparent as possible” and that “no one will spend the night in secret.”

What we know so far about the fiscal measures prepared by the Cholak government

What we know about the taxes in question, according to Minister Marcel Bolosh:

• Fiscal measures to be announced this month.

  • It is a tax of 1% for multinational corporations on turnover, if the tax of 16% is lower.
  • Special tax for banks on exceptional profits. The minister gave the example of a tax in Italy and that something like that is in the package of measures.
  • 10% income tax on interest on government securities, but it will apply to future securities (no decision yet)

Measure approved for taxation of micro-enterprises:

• 1% for those whose income does not exceed 300,000 lei inclusive

• 3% for micro-enterprises with income over 300,000 lei

  • For some products, VAT will be increased from 5 to 9%, for fitness rooms or photovoltaic panels, including BIO products, which will be effective from January 1.
  • Thermal energy remains subject to 5% VAT, just like firewood.
  • VAT in Horeca remains at the level of 9%.
  • Tax on dividends remains at 8%

On Friday, the head of government went on his first visit to Brussels after taking office to negotiate with representatives of the European Commission on increasing the budget deficit without losing European money. Romania projected a deficit target of 4.4%, but now wants to increase it to 5.5%.

READ ALSO:

  • Cholaku’s VIDEO: From October, each minister will make a proposal on the reorganization of ministries / What he says about the discussions in Brussels on special pensions
  • INIDEO Marcel Cholaku after the meeting with Ursula von der Leyen: I do not agree with the VAT increase above 19% / There is flexibility regarding the deficit / Prime Minister’s calculations