PSD leader Marcel Çolaku said on Saturday in Bacau that the solution would be to abandon the flat rate and progressive taxation, but that the National Agency for Fiscal Administration (ANAF) must be digitized first.

“I think there are only one or two countries that have not abandoned the single quota. Probably Estonia. It seems to me that the Czech Republic has abandoned the single quota. There was still Estonia and Russia remained. If you think Russia’s economic tax model is still progress? I think not. Therefore, the realities are completely different. We should not remain bound and stuck in certain decisions that were good at a certain economic moment and for Romania. At the moment, progressive taxation is clearly the way out. First of all, it is necessary to digitize ANAF, and then talk about changes in taxation. First, let the state fulfill its duty, and then let’s go into another sphere,” said Marcel Cholaku, answering questions about this topic on Saturday in Bacau.

right this year’s report of the European Commission regarding taxation trends at the level of the European Union, in 2020 Romania collected revenues from the state budget of 26.3% of GDP, consisting of direct and indirect taxes, as well as social contributions, an indicator that places it in 26th place at the EU level. The largest percentage was recorded in the direction of social contributions, which is 11.1%.

In order to increase revenues to the state budget, Decree No. 16/2022, published in mid-July in the Official Gazette, foresees a number of significant changes, such as those concerning the regime of micro-enterprises, taxes or income taxes and social contributions. Some measures have already come into effect on July 18 and August 1, but the vast majority apply from January 1, 2023.

Why Romania needs a restructuring of the fiscal system. What social categories will it affect?

One of the most discussed aspects of the tax system in Romania is the over-taxation of low and middle wages, so the private sector is implementing solutions for workers, such as income-based PFA, copyright contracts or gift vouchers.

As a result of pressure from the private sector, the authorities have introduced various provisions to improve the tax regime, among which the most controversial are exemptions from paying payroll tax and social contributions for the construction, agricultural and food industries.