The gambling earnings tax, less than 6% in the final package of fiscal measures compared to the one initially announced by the government

The tax on gambling earnings of up to 10,000 lei would increase from 3% at present to only 4% – the government has set in the draft law with fiscal measures that it was approved on Friday in the meeting and for which to take responsibility in Parliament on Monday.

The draft law Initially published on Thursdayprovided for an increase to 10% of the tax, reports the publication of Profit.ro on Saturday.

Also, for earnings between 10,000 lei and 66,750 lei, the tax increases from “300 lei + 20% for what exceeds 10,000”, at present, to only “400 lei + 20% for what exceeds the amount of 10,000”, although, as a result of the share to climb to 10%, it was proposed in the project “1,000 lei”.

Likewise, the taxation for which exceeds 66,750 lei will be lower than what was intended in the project, the source said.

The fiscal measures adopted by the government

According to the Government, among the measures belonging to this project are the re -sampling of two thresholds, the general share to 21% and a reduced share of 11% (drugs, food, horeca), increasing taxes from dividends to 10%, increasing excise duty on alcohol, tobacco, fuel by 10%, freezing the public system, For lei they will pay the contribution to health, tax on banks' profits and gamble gains.

Taking these austerity measures was necessary for “financing of public services categories for citizens can be supported from public funds”, say the project authors. According to their calculations, this year the revenues would increase by about 9.5 billion lei, and the expenses would decrease by 1.2 billion.

Endangered by CES

However, the draft law received a negative opinion from the Economic and Social Council (CES). The opinion is only advisory, so the government can continue to cross the project.

According to the opinion, “CES members say that the project does not respect the principles of equity and progressivity in public policies, transferring the fiscal pressure to the population with low and medium incomes.” They warn that the proposed measures could deepen social inequities.

Regarding the VAT rate, the CES notice shows that the increase will have an immediate inflationary impact on the current expenses of the households and will affect the access to essential goods, especially in the case of vulnerable social categories.

CES members also draw an alarm signal in relation to the lack of transitional protective measures, prior information, grace periods and support mechanisms.

In addition, the members of the Council request that the Government, who have committed to maintain a reduced VAT rate for Horeca (11%), include cafes and coffee preparations in this category, “to eliminate administrative confusion and correct discriminatory treatments.”

“Accordingly, the draft law, in the current form, is not based on a solid analysis of the aggregate social impact, does not contain compensatory protection measures and does not respect the constitutional principles regarding the fiscal equity and social solidarity. It is necessary to start a balanced fiscal reform, which contains measures of the real protection of the citizens. Degradation of living conditions, but also an explosion of institutional distrust and social radicalization, with direct consequences on democracy and stability in society ”, concludes CES.