Marcel Ciolacu: We have to tax capital.  We have been taxing work for 30 years

PSD President Marcel Ciolacu says that in Romania capital should be taxed, not just labor, because so far those with low and medium incomes have been the ones who have borne the “burden of taxes”. He explained a PSD proposal for taxing companies with a turnover of more than 100 million euros, and the money to go to a fund to finance education and health projects.

“There are about 320 large companies with a turnover of over 100 million euros in Romania. An average of 0.8% profit tax is paid by these companies. In other words, they pay less than micro-enterprises, which pay 1%. At the moment, in Romania, too much work is taxed and we have to find a balance with the taxation of capital “, said Ciolacu.

“For 30 years, the burden of taxes and the bulk of taxes has remained, through the taxation of labor, on those with low and medium incomes. A balance must be found in some way. This does not exclude the reorganization of ANAF, of Customs, digitalization – things that will be done in the next period in a more alert way “, he added.

“We are not talking about a solidarity tax in particular. I put it that way because I saw that there is this solidarity tax in Germany. Proposing to create this balance, from my point of view 0.8% profit tax on these large companies seems too little to me “, the head of PSD also said.

The Social Democrats want to tax companies with a turnover of more than 100 million euros, the discussions being that the value of the tax should be between 0.5 and 1% of turnover. However, these are companies that do not cover this amount from the profit tax and would not mean double taxation, according to Digi24 sources.

Finance Minister Adrian Câciu confirmed on Tuesday that the adjustment of some facilities and the increase of deductions for people with low incomes were discussed, and the solidarity tax is rather a contribution for the education and health system. According to the minister, this package will bring to the state budget between 1.2 and 1.5 percentage points of GDP.

Marcel Ciolacu stated that he is not in favor of lowering the VAT on fuel and suggested that instead of conducting investigations that take too long, perhaps those from the Competition Council should resign. The PSD leader added that he will not increase any excise duty, asked about the increase in excise duty on cigarettes or VAT for products containing sugar and explained that it is about the implementation of a European directive for cigarettes used on the basis of heating.

Editor: MB

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