On Friday, Prime Minister Nicolae Ciuca gave a harsh reply to the PSD’s proposals on fiscal policy, saying that such measures taken now could lead to “twice as many problems in a year or two”. The head of government also said that some proposals could be unconstitutional and said that the PNL would not support “unconstitutional measures, overnight taxes, taxes and burdens on companies and the business environment.” PSD announced on Friday that the Coalition agreed to apply a progressive system of deductions for salaries below 4,500 lei and asked the governing partners to accept the other proposed measures, including the taxation of high salaries in the budget system and special pensions.
“We are all seeing news and statements about the effects of the current global economic crisis. Here are some clarifications to make it very clear what we are talking about and for everyone to understand:
1. It is not healthy and responsible to play with the tax system in times of instability. We risk having twice as many problems in a year or two as we have today. We have, in history, precedents of crooked measures, which came at favorable times for some from an electoral point of view, for which, later, the Romanians also paid.
We have about 96 billion euros allocated for development and the mission to direct this money to all key areas, in a smart way. Otherwise, we will find ourselves in an irreparable financial collapse.
2. We do not allow ourselves to make constitutional mistakes with major reform measures in key areas, especially those with a budgetary impact. Let us remember that the laws on the special pensions of judges or parliamentarians have been declared unconstitutional by the RCC. Either because they violated constitutional principles of the independence of the judiciary, or because they were unclear, imprecise, unpredictable, or adopted without respecting constitutional parliamentary procedures.
In the field of taxation, the entry into force of measures that may subsequently fail the test at the RCC means damages paid from the state budget.
Are there inequities? Yes! But we have in the PNRR very clearly stipulated the following: pension reform (a system based on contributivity), as well as the reform of public administration and salaries in the public system (a system based on performance). That’s how we’ll fix things. Why? To produce effects. To work in the long run.
3. The PNL will not support any measure that will stifle the business environment, the vital engine of the economy. We do not agree with any vision that today burdens the business environment and companies. How do we recover if we weaken the real economy?
We cannot promote unconstitutional measures, overnight taxes, taxes and burdens on companies and the business environment. Mistakes during this period will cost us dearly. And we, the National Liberal Party, assume the measures taken and understand that we must look at what Romania will look like in the near future, with the PNRR reforms started, with the PNRR money activated in support and development programs of the country. We are not looking at polls today, but in the long run at the Romanian society. We believe that this means responsibility for governing “, Prime Minister Nicolae Ciuca wrote in a message on Facebook on Friday.
PSD announced on Friday, in a press release, that the Coalition agreed to apply a progressive system of deductions for salaries below 4,500 lei. PSD asked the governing partners to accept the other measures proposed by the Social Democrats, including the taxation of high salaries in the budget system and special pensions.
PSD President Marcel Ciolacu said that “it is deeply unfair for people with very high incomes to enjoy the same tax regime.”
“In these very difficult times from an economic point of view, it is deeply unfair for people with very high incomes to enjoy the same tax regime applied to those with very low incomes. Therefore, I insisted and will continue to insist in the Coalition, that this principle of solidarity between taxpayers should occupy a central place in the reform of the Romanian tax system “, said Marcel Ciolacu.
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