The economic program of the Social Democrat Party (PSD), that the leader Liviu Dragnea (photo) said he would implement it, includes massive tax cuts: 0 percent for salaries, pensions and incomes from independent activities under RON 2,000 monthly gross and of 10 percent if these exceed this threshold, lower insurance contributions by 4 percentage points, 0 percent for dividends, 1 percent for micro enterprises, VAT of 18 percent, the elimination of 102 non-tax levies.
“I voted for more money in Romanians’ pockets, higher pensions and wages, lower duties and taxes to support business people, young people to buy a home, to feed ourselves from the fruits of our land, not from imports,” Liviu Dragnea said late Sunday, after the exit polls.
PSD promises to reduce the cumulated contributions for employers and employees to 35 percent from 39.3 percent currently.
The winner party proposes also a return to the calculating formula for excise duties depending on EUR-RON exchange rate in October of each year, instead of the artificial one set by Ponta Government to RON 4.73, as well as eliminating local taxes for agricultural land and vehicles under 1,600 cc.
Social Democrats seem interested in real estate, not only in terms of VAT – which is only applied to the new construction – but also of tax transactions that they want to eliminate it, if the value of the building is up to RON 450,000.
In reply, Prime Minister Dacian Ciolos said on Monday at the Tripartite Council meeting, that “in a different context than the elections, the Government would have set the minimum wage in 2017 to a level close to that proposed by the trade union confederations” and called PSD take a concrete decision.
PM Ciolos said he will discuss with PSD leadership on many governance issues.