Without consensus after the Cotroceni discussions of the parties regarding the reduction of the budget deficit. What are PSD, PNL and USR proposals and where they don't understand
The discussions at the Cotroceni Palace on the measures meant to reduce the budget deficit ended on Tuesday evening without the parties reaching them. The final package with fiscal-budgetary measures are to be completed during Thursday, political sources said.
At the discussions of the working group, in which the experts sent by the parties were brought together, the PNL representatives came with three proposals related to the fiscal policies. It was proposed to establish a share of 16% for the dividend tax, increasing compared to 10% as it is at the moment, and a level of 19% of the profit tax, with three points above the current level.
The Liberals also ruled for the introduction of the social health insurance contribution for pensions of more than 2,500 lei, the proposed level of the contribution being 10% PSD representatives opposed the introduction of these measures, and those of the USR came with some observations.
Divergent fiscal philosophers
The PSD proposed the introduction of a tax for the transfer or transactions for income outsourcing by 2% of value. Also, the Social Democrats support the application of a solidarity tax for revenues greater than 10,000 lei net until December 31, 2025, after which a progressive income tax will be established.
Social-democrats propose to increase excise duties to 20%, except for gas and diesel, increase in gambling taxes and overload luxury cars and expensive jewelry.
The PSD also wants to eliminate the facility for the bars and nightclubs that pay a 5%profit tax, as well as the taxation of earnings from cryptocurrency transactions.
The adoption of these measures should bring about 11.9 billion extra lei to the state budget, I think the PSD experts. PNL and USR did not like most of these measures, according to HotNews sources.
USR proposes VAT growth
The USR proposals mainly concerned the value added tax. Thus, the general VAT level would be 21%, and in the Horeca sector it will be 19%. The level of low VAT rate for food would increase from 9% to 12%. The PSD has opposed the VAT increase to 21%, but if this solution is reached, it proposed that the level of food and medicines are reduced to 5%.
The USR delegation also demanded the listing of state -owned companies and the privatization of Hidroelectrica, Romgaz, Nuclearelectrica, Constanța and Salrom.
Finally, the USR also proposed to eliminate the facility in the Fiscal Code according to which those who are on copyright, but also have a work contract not to pay CAS and CASS for copyright contracts, but to pay at the level of 6, 12 and 24 minimum wages. The proposal was supported by PNL.
Government in two weeks
The technical working group of the parties will also meet in Cotroceni on Wednesday to discuss the combination of state institutions, and on Thursday for the incentives for the economy. Also on Thursday, the final package should be outlined with the fiscal-budgetary measures to reduce the deficit.
President Nicuşor Dan announced on Tuesday morning that he will have a new discussion with the representatives of pro-Western parties during the day, and on Wednesday he will hold a press conference. The president explained that in about 2 weeks we could have a new government.
Nicușor Dan announces a new round of discussions with the representatives of the parties, today
“Tomorrow will be a conference that I have not done long, in which to answer all the questions. I, on this occasion, tell you where we are,” Nicuşor Dan announced in a statement to journalists in front of his home, quoted by Agerpres.
The president estimates that the government will be formed in two weeks.
“About two weeks today, I estimate. Why this? Because, and many of the parties' representatives have agreed with me, in a coalition with many partners there are tensions on different topics and then it is good -obviously we will not be able to provide everything -but many of the things we expect to have to be written so that there is no divergence.
Asked if he still has a prime minister besides Ilie Bolojan, he replied that the discussion was in progress.
