Labour minister heralds extended taxation process

Romanians could deduct their expenses in the near future, as the Social Democrat Party ruling pledges huge taxation campaign through the household tax. Moreover, Labour minister says that in this way there will be more money for the pay rises heralded by Grindeanu Gov’t in the new public salary law.

“It’s very simple. It’s the American system, if you want. The intention is to get all money from the black economy. Where shall we cash in to rise wages? Well, we’ll fiscalize all. If you take your child to the ballet school and you could deduct this expense, you will ask for the receipt. You will end asking for receipts and invoices everywhere. You take your child to private classes, you’ll ask the receipt,” Labour minister Olguta Vasilescu told RTV.

Her statement comes after the Ministry of Finance started talks with business representatives and tax consultants this week on the introduction of a tax on household, but also to eliminate the flat tax and introduce progressive taxation.

The ruling party is practically searching for solutions to support the major public salary rises, the more the business environment voiced concern and doubt over these measures.

On Monday, the Fiscal Council chairman Ionut Dumitru says the budgetary impact of the public wage law is much underestimated.