Rows in the ruling coalition on the green certificate, solidarity tax

The leaders of the coalition parties, PSD, PNL and UDMR are expected to convene at the Parliament Palace this afternoon to continue talks on the 2022 state budget. The meeting comes after PM Nicolae Ciuca, Florin Citu, Marcel Ciolacu and Kelemen Hunor have met last evening with President Klaus Iohannis, with political sources revealing that it was agreed to consult the business environment on the enforcement of a solidarity tax of 1% and to give the green light on the green Covid certificate.

President Klaus Iohannis has reportedly called on coalition leaders to reach a consensus on the 2022 state budget as soon as possible.

Regarding the introduction of the solidarity tax for large companies, the president suggested that political leaders consult with the business community.

Previously, UDMR leader Kelemen Hunor called for the introduction of a 1% turnover tax for companies with a turnover of more than 100 million euros in the coalition’s budget talks. Kelemen Hunor argued that the solidarity tax could be enforced for three years at the most and estimated that this tax could bring around RON 5 billion to the state budget

However, the UDMR proposal was not accepted by the Liberals. Former Prime Minister Florin Cîțu announced that the PNL is opposed, but Prime Minister Ciucă stated that the talks continue. Liberal chairman Citu argued that the multinational companies that would be taxed by 1% from their turnover paid taxes to the state budget in advance in April 2020 when the economy was shut down due to the outbreak of the coronavirus pandemic. Citu also said that he doesn’t know where the money would be directed to and proposed for this tax to be discussed with the companies.

In their turn, the Social Democrats would have doubts on enforcing new taxes so quickly. Although they would agree the solidarity tax, PSD argued that introducing the tax as of early next year would prove unpredictability.

The solidarity tax would impact 300 big private and state companies.

On the other hand, at the Cotroceni meeting, the Romanian President would have admitted the need to introduce in the state budget for 2022 the winter aid amounting to 1,200 lei.

Regarding the COVID certificate, the Coalition leaders have given assurances that a new form will be ready by Christmas. Marcel Ciolacu allegedly talked about the draft law that the Minister of Health, Alexandru Rafila, intends to submit to the Parliament, during this week.