Draft bill on doubled taxes – FinMin claims no increases expected, ministry denies draft ordinance to amend the Tax Code

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The Ministry of Finance reacted on Wednesday to the information in the media regarding the doubling of taxes for employees and amendments to the Tax Code, saying there is no draft law assumed by Minister Anca Dragu to include such things. “The Ministry of Finances does not envisage tax increases this year. The only decisions were taken to simplify the fiscal procedures to stimulate economic activities,” the ministry informs in a release.

Finance Minister Anca Dragu in turn stressed she has asked the ministry’s experts to conduct an internal analysis with several scenarios for cutting down red tape and to improve the business environment.

“Within this context, tax increase has not been considered as a possible scenario in the package to amend the Tax Code. We are not considering including decisions representing further fiscal burdens for the tax payers, being they natural persons, legal entities or authorised persons,” Anca Dragu said on Wednesday.

“The draft law I assume, as Finance Minister, will be submitted for public consultation in the next several days, in no way it is about tax increases as rumoured by the media,” Dragu said for digi24.ro.

In an earlier intervention to Antena 3 TV, Dragu had mentioned that no tax increases are envisaged now or for next year.

The reactions come as information surfaced on Wednesday morning claiming that the employee’s social security contributions (CAS) might be increased from 10.5% to 21.7% and the health contributions (CASS) from 5.5% to 8.9%, according to a government draft emergency ordinance to amend the Tax Code, profit.ro informed, quoting sources from the Finance Ministry.

According to the source, employers allegedly would be exempt from CAS for normal working conditions, as well as CASS exempted. Instead, they will be forced to raise by 21% the gross monthly basic salary for all monthly wages lower or equal to 5 gross average earnings in the economy, zf.ro also informs. For the remainder of wages, the employers will have to increase them by RON 2,815.

The Ministry of Finance also denies rumours that unexplained wealth of up to EUR 1 million would receive a grace period until March 31, 2017, adding that this is not an option for the ministry.

 

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