UDMR Development Minister Ceke Attila admitted to the government on Wednesday that there had been discussions in the Coalition about excessive taxation in the private system. Asked by HotNews.ro whether there is already a solution to excessive taxation only in the state system, he replied: “We don’t have a solution either from the state or from the private side,” stressing that an analysis by the Ministry of Finance is awaited.

Development Minister Ceke Attila was asked about the analyzes being carried out at the Ministry of Finance, whether this would be excessive taxation only for the state or also for private salaries.

VIDEO (18:08) What Minister Cheke Attila says about what was discussed in the Coalition

• “We have to wait for this analysis of the Ministry of Finance. You will know the position of UDMR when we have this analysis in numbers.”, said Minister Cheke Attila.

Asked by HotNews.ro whether there is still no solution to excessive taxation only in the state system, he answered:

• “We have no solution either publicly or privately. We had the first discussion, after which the idea arose to bring some documents, analyzes from the Ministry of Finance, from the Ministry of Labor, if necessary. Based on the numbers, we restore this diction. No decision has been made regarding this event.” – answered the minister.

Austerity decree: additional tax of 16% on all incomes of state employees exceeds the salary of the President of Romania

Prime Minister Nicolae Cuke said on Wednesday that at the moment the first proposal in the coalition is to increase taxation by 16% for all incomes of budget holders that exceed the salary of the President of Romania, but the decision has not been taken because the Ministry’s analysis finance is expected.

Regarding discussions on the introduction of a tax from 15 to 20%, the Prime Minister said:

• “We are talking about a tax that is currently as detailed as possible from the point of view of the excess of state salaries over presidential salaries. At the moment, as we discussed, only on the state. (..) The percentage of 16% was discussed because it also works with the tax legislation on finance,” said Prime Minister Chuke.

Answering the question about the risk of unconstitutionality of such a measure, the head of the executive power noted that “any measure they will take must also have legal support.”

“So those who come and propose this approach should come with all the elements,” he said.

• “Absolutely nothing has been determined,” the prime minister said, adding that he would look at the data and make a decision based on it.

Government sources said on Wednesday, ahead of a cabinet meeting, that the current proposal includes a 16% excess tax on all public sector incomes that exceed the salary of Romania’s president.

• “The 16% surcharge will apply not only to those whose combined income from pension + salary exceeds the salary of the president, but also to those whose salary exceeds the salary of the president of Romania,” government sources said.

Additional taxation will also apply to those in ANCOM, ANRE, in CA (Boards of Directors of State Companies) who have higher salaries than the President.

Another agreed measure would be that no one is allowed to sit on more than one board of directors.

The 16% threshold is only the first proposal currently under discussion. Why 16%?

• “Because at the moment it is already like a tax figure. But the Ministry of Finance should make proposals based on numbers. If the financial analysis is ready in a week, it will be approved by the coalition, and then the ordinance will be adopted,” the government said.

Another measure contained in the order is the freezing of public employment with certain exceptions, which must be justified and approved by the Government, as was done last year.