Parliament criticisms of the governing program

The criticism in Parliament came after it was found that the governing program that has been drafted when the new Government was formed contained significant changes from the original one. More money is provided for the state budget, but timetables for implementing some measures are offset and changes to the tax regime will also occur, especially for companies.

The new provisions stipulate that the increase of the minimum wage and its level will be accelerated, which would reach 2,000 lei in 2020 compared to 1,750 lei, as foreseen in the electoral program of PSD. However, a solidarity fee, which is not yet very detailed, would be introduced. This would be paid only by those with very high salaries.

For businesses, the corporate tax may disappear and be replaced by a three-step tax on company turnover. PSD leader Liviu Dragnea has given assurances that the government will make a serious analysis of this measure and explained why new tax regulations would be needed.

"The large, multinational business companies with a turnover of about 580 billion lei report only 9 billion taxable income, the Romanian companies have a turnover of 550 billion lei, and they report 27 billion lei taxable profit, three times more. "Given that a group of companies with such turnover reports so little taxable profit, there are some causes," PSD leader Liviu Dragnea said.

At the timetable offset, it is mentioned the one-year postponement of the VAT reduction from 19 percent to 18 percent. Also the introduction of holiday vouchers for public servants was postponed from July 1st until the end of 2018 the latest.

Source:RRA.Translated by Miruna Matei