Gov’t to give up charging people with no income

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Gov’t spokesman Dan Suciu announced on Wednesday that the Executive considers eliminating the Fiscal Code provision, according to which, as of January 1, Romanians with no income are bound to pay 5.5 percent of the minimum wage as Social and Health Insurance contribution (CASS).

“Government plans several changes to the Tax Code. It is questionable whether the obligation to pay the contribution of people without income respects the principle of fair sharing of the tax burden. And the costs for their collection seem to be higher than the revenues the state would get. We will not hunt down the people across the country. We will try in the next period to clarify this binding effect of this contribution, but the government is still wanting the tax base increase,” Dan Suciu explained.

He added that, if it decides to alter this item (ed. note article 180), there will be no budgetary impact, as in the budget construction it was not taken into account the payment of this contribution by people who do not earn income.

“We will do an analysis about the sustainability of this article 180, both fiscally and constitutionally, until late January, early February,” Gov’t spokesman noted.

Asked if Prime Minister Dacian Ciolos demanded the resignation of State Secretary in the Ministry of Finance, Gabriel Biris, who said that people who did not earn any income for six months are bound to pay CASS, Suciu said: “There is no question in terms of his resignation.”

Statement was made in the context of which Biris said recently that it is unacceptable to exist so many “ghost-persons” – three million – who reported no income and they do not exist from a tax perspective.

 

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