PNL’s Orban statements that IT workers should be taxed stir reactions

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While in Medias, PNL Chairman Ludovic Orban stated 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.”

His statements have stirred immediate reactions. A USR Deputy criticized the idea, whereas economy professor Cristian Paun, economic adviser to the PNL chairman, supported the idea. The software association argues that zero tax for the IT workers makes the industry competitive against the competition in Poland, Ukraine and Belarus, rfi.ro informs.

The tax exemption for IT workers was introduced in 2003 by Adrian Nastase cabinet and disputed during the time, but has remained in force. The main idea was to keep in the country the qualified workforce in the field.

According to the National Statistics Institute, the average net wage in the field was RON 7,491, the highest in Romania, twice the average wage.

The IT sector contributed to the GDP in a share of 5.2% in 2018, and contributed to the GDP increase by 0.7%, second sector after industry.

The targets have been reached, but in this field one can work in any place on Earth. There are a lot of Romanians in this field that work for companies in other countries in Europe of for the ones in the US.

The issue Ludovic Orban has approached is certainly disputed. He is right that fiscal privileges are out of the normal. Other social categories benefit from other exemptions, such as researchers, constructors and a draft bill wants to address the petro-chemical field. One may find arguments for any sector, the source reads.

On the other hand, keeping the competiveness of the sector is essential, as well as avoiding the workforce deficit.

Orban has asked a question in regard to this field, but the issue is general, and the opposition could envisage amending the current fiscal system. The arguments bring to the front the need for a new Tax Code.

 

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