President says gradual taxes in IT sector should be considered

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President Klaus Iohannis stated on Monday that taxes for the IT sector must be considered, based on the equal tax treatment principle, while yet warning authorities that they need to take into account that the IT sector has developed in the past years from almost nothing to 6 per cent of GDP” precisely because coders’ salaries had been exempted from the income tax.

The President’s stance comes when he was asked if the tax exemption for employees in IT sector should be cancelled, and after Prime Minister Ludovic Orban had stated that all citizens should benefit from the same tax treatment.

“Basically it is true, any profit in Romania is taxed. But we also need to see the other side of the matter. These exemptions that have been made in the IT sector have helped this sector to grow, in just ten years, from something insignificant to 6 per cent of the GDP, and then we have to think about whether we want to introduce the taxes now or progressively. It’s an ongoing discussion,” the President said on Monday.

Orban’s stance on taxing the programmers’ wages is older. He said last summer when he was in the Opposition that “it is out of normality to have the IT workers exempted from paying tax on wages. Any revenue should be taxed. Fiscal facilities turn into privileges.”

On the other hand, President Iohannis said that he is not afraid of an increase in the budget deficit, in the context in which the Ministry of Finance borrowed and the pension point is set to be increased by 40 per cent as of September 1.

Yes, I hear the warnings both from the Tax Council and from the National Bank. The money is planned for this year, but it is certainly a discussion that will take place in the coming months,” said Iohannis, about the increase in the pensions.

Also questioned if pensions should be increased progressively, the head of state the debate on pensions is longer and more complex, and it should be tackled more wisely, unlike the PSD Gov’t that ruled without studies and assessments,

“I would like this Government to analyze deeply, to study with great, great responsibility the whole issue. Together with the Pension House, with the pensioners’ representatives, with the unions and so on, because, in the end, it is in the interest of all to find the best solutions for motorways and pensioners,” said Iohannis.

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