Update2: Protests supported by Cartel Alfa against GEO on ‘tax reform’ expected during Gov’t sitting on Wednesday

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The Cartel Alfa Trade Union Confederation has made an appeal to its members and all citizens to join the protests announced on Wednesday at 14:00h in Piața Victoriei to say ‘no’ to the transfer of social security and health contributions from employer to employees and to request the Government to withdraw the emergency ordinance, a statement released on Wednesday reads.

Meanwhile, the Government sitting has been rescheduled from 15.00h at 13.00h.

According to the source, Cartel Alfa rejects the tax reform on the transfer of contributions from the employer to the employee.

“We reiterate the position of CNS Cartel Alfa to reject this fiscal project, as expressed by our representatives in the Social Dialogue Commissions with the Prefectures. The so-called tax cut is actually the increase in the tax burden on employees,” the press release reads.

In view of the Government sitting on Wednesday, a protest was announced since Tuesday in Piata Victoriei by the organisers of the event called ‘Corruption kills’ in order to stop this ‘toxic emergency ordinance’, ziare.com informs.

“The Government will discuss o Wednesday the emergency ordinance on amending the Tax Code, despite the dissatisfactions expressed by the employer’s associations, trade unions, employees and the protesters are invited again to the streets in Piata Victoriei, to put an end to the ‘fiscal hopping’, as it was called by President Klaus Iohannis, the organisers say.

“November 8 is the Black Wednesday for Romania’s economy. In order to mend a budget they were unable to manage, the PSD-ALDE government is capable to destroy Romania’s free economy. The amendments to the Tax Code, intended by the Tudose cabinet, are to be approved by undemocratic means (emergency ordinance) and will bring chaos in the business plans and in payroll. The governance’s inconsistency is killing all chances for a stable and predictable Romanian economy,” the organisers say.

They also make an appeal to the companies in Romania o support the protest and to allow employees to leave for several hours to join the protest, not to be intimidated by the conspiracy theories and to understand  this is the last change to fight the so-called ‘Tax revolution’ which will place business in peril. The appeal is addressed to companies such as Oracle, Kaufland Romania, MEGA IMAGE, FAN Courier, Urgent Cargus, IKEA, Carrefour Romania, KPMG Romania, Lidl Romania, OMV Romania and Rompetrol.

PM Tudose: Transfer of contributions to be approved on Wednesday by GEO

Prime Minister Mihai Tudose confirmed on Tuesday that the transfer of social security and health contributions from employer to employees will be done during the Government sitting on Wednesday, by emergency ordinance. Asked about the emergency ordinance, Tudose confirmed: “yes, by ordinance.”

The Premier denied the mayors expressed dissatisfaction with the expected Tax Code amendments. He added that the Government sitting will take place at 15.00h.

The so-called ‘tax revolution’ envisaged by the Mihai Tudose cabinet, including the decrease in income tax from 16% to 10%, is rejected by the city mayors. They claimed on Monday, during a mayoral sitting, that the decision will lead to the fall by 30% of the investment budgets, which would be catastrophic for the cities they manage. They also claimed that if the Government does not give up its intention, they will request compensatory measures such as the increase of the quota of the tax on global revenues to the city halls from 41.75% to 70%

PSD’s Dragnea denies Tudose was against the transfer

Social-democrat Chairman Liviu Dragnea said on Tuesday that Prime Minister Mihai Tudose did not oppose the new Tax Code amendments.

Dragnea avoided to answer questions about the delay of the two Government sittings on the tax measures, stressing he would not make any statements on Tuesday.

On Monday, President Klaus Iohannis made another appeal for a significant delay of the amendments to the tax framework, stressing that the deadline of January 1, 2018 is inopportune. “We’ve seen already that besides the promoters, everyone is against these amendments. I believe that postponement is needed, as well as a founded study. In my opinion is inopportune to aim an implementation as of January 1, 2018,” President Iohannis said on Monday during the cities gathering at the Athenaeum Gala.

He reiterated that the amendments are a ‘fiscal-budgetary hopping’.

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