Update2: Gov’t said to approve GEO on taxes on Friday, negative opinion from Economic and Social Council


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The emergency ordinance introducing new taxes will be discussed in an extraordinary Government sitting on Friday, until then the text is subject to amendments by the Finance Ministry, digi24.ro reports. Initially, sources said the ordinance was to be approved during the sitting on Thursday.

Earlier on Thursday, the Economic and Social Council (CES) gave a negative opinion on the emergency ordinance whereby the Government wants to introduce new taxes, the so-called ‘tax on greed’ and includes other decisions.

The CES opinion is only consultative and the Government could proceed to its approval on Thursday’s sitting, sources say.

Usually, the CES meetings take place on Tuesdays, but it was summoned exceptionally on Thursday to examine the GEO.

According to sources, the negative opinion was given by the employers associations’ representatives, with the representatives of trade unions and civil society giving a positive opinion.

Prime Minister Viorica Dancila said earlier on Thursday that the emergency ordinance could be adopted on Thursday. “If we have the discussions within CES, we will adopt the ordinance,” Dancila said. The Premier argued “it is not about taxes, it is about decisions that will represent support for the citizens.”

Labour Minister Marius Budai said on Thursday that the emergency ordinance on taxes could be added to the Government sitting’s agenda.

The ordinance includes the so-called ‘tax on greed’ announced on Tuesday by Finance Minister Eugen Teodorovici.

“Probably, yes. For sure. It’s for every minister to request an additional agenda for important acts. I believe we’ll complete what we have to do for Romania’s welfare,” Minister Budai said.

The ordinance has not been included on the agenda of the Government sitting on Thursday, but it could be added on the additional list.

President Klaus Iohannis is attending the Government sitting.

Finance Minister Eugen Teodorovici announced on Tuesday that banks will be differently taxed, according to ROBOR (Romanian Interbank Offer Rate). The higher the index is, the higher taxes will be, says the new tax, called “tax on greed”.

The Fin Min announced this measure among other several fiscal measures envisaged for 2019, such as the EUR 10 billion investment fund, the decrease of taxes in constructions, but also the controversial decision to take the “vice tax”, which encompasses money normally intended for the investments in hospitals and to the big healthcare programmes to counter chronic diseases, and redirect it to the state budget to cover for the state employees’ salaries and for other expenses in the central administration.

He also announced the capping of the gas price for a three-year period: RON 68 megawatt/hour. The measure will apply until February 28, 2022.

In the case of Pension Pillar II: Funds can invest in public-private partnerships; administration fee drops from 2.5% to 1%; the second commission of 0.05% of the assets changes according to the fund’s performance; a person may withdraw the money, but not earlier than 5 years, and the withdrawal fee is 2% of the assets.


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