Interim President of PSD, Sorin Grindeanu, stated on Wednesday that if a progressive tax were implemented, there would be no need for an increase in VAT. In this regard, Grindeanu advocates for taxing incomes exceeding 12,000 lei.
Sorin Grindeanu proposes taxing incomes above 12,000 lei.
“There are recommendations from international financial institutions, even from the Commission (European Commission – ed.), please look at what the IMF stated two or three days ago; the IMF recommends that we have a progressive tax in Romania. This is a recommendation from the World Bank, the IMF, and the European Commission. I understand that we need to remain among the last states… there are 27 EU countries, and only four have retained this type of taxation, which we have: Romania, Bulgaria, Hungary, and Estonia. The rest all have progressive taxation. That means, from a certain rate upwards for high incomes, which is why we don’t want to impose extra taxes on low incomes; that’s what progressive taxation is. Not for people with low and medium incomes,” emphasized Sorin Grindeanu.
The interim president of PSD added that if this measure were implemented, there would be no need to increase VAT.
“We could implement it starting January 1, let’s say, on incomes above 12,000 lei, the impact of applying a 20% tax on what exceeds 12,000, would bring us an additional revenue of about 12 billion. A buffer of a few months is needed to apply this progressive tax. Until January 1, we can discuss that solidarity tax, which, in fact, is also a progressive tax, for people with high and very high incomes,” Grindeanu further stated.
Regarding these measures, he added that ‘there are things that we will implement sooner or later’.
Interim President of PSD, Sorin Grindeanu, asserted that the fiscal measures in the government program discussions are the most challenging, stressing that PSD will not agree to reduce incomes for pensioners or employees.
“We will never agree as a party to cut incomes for pensioners or for employees, for people who have low and medium incomes. PSD cannot do this and will not do this. We have seen various projections; let me refrain from commenting, as I would like it to be a fair way to approach this matter. When we reach an agreement, we will communicate it, but I emphasize this: we will not agree to impose CASS, for example, on low or medium pensions, to tax more those who have low or medium incomes, to cut various things that do not contribute significantly to the budget. These are things we cannot accept,” stated Grindeanu.
He added that PSD does not support taxation on banking transactions.
“I don’t know who came up with that proposal,” the social democrat said.
Grindeanu indicated that if someone wishes to be prime minister, they must take responsibility for that position.
“If someone wants to be prime minister and wishes to have all four parties in the coalition, if an agreement is reached, they will have to take responsibility, since reaching an agreement on fiscal measures means that the four political forces plus the minority group have come to an agreement. Then the next step is to engage in political negotiations that can conclude very quickly,” communicated the interim president of PSD.
Graduated from FJSC in 2014, I have written for several reputable publications in Romania.
