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PM Tudose: We will not levy tax on business turnovers
After a meeting of the ruling coalition on Monday, Prime Minister Mihai Tudose announced that the government will not levy taxes on business turnovers, mentioning that other avenues will be sought so that the business players "who think they are smarter than the government will no longer be so."
"We will not levy taxes on business turnovers. I have hurried a little and told you while in Brussels that I saw the simulations and decided the taxes cannot be implemented. I made the decision based on talks with and materials from Finance Minister Ionut Misa. We made the decision as we were flying to Brussels; we stood together and talked it over. Today, I have unveiled to the ruling coalition as well the arguments underpinning the decision; please consider the matter closed," said Tudose.
He added that the same opinion has been included in the government programme not as an aim in itself, but as a means to stymie the business players "who get the impression they are smarter than the government."
"That has been added to the government programme not as an aim in itself, but in an attempt to avoid certain provinces where some actors would get the impression, pure and simple, that they are smarter than we are in this area. They have won so far, but we will make sure they will no longer win from now on. We will be implementing, while being a party to the implementation of last year's European directive providing for a conjugated effort of the EU member states in relation with unjustified diminishing of the tax base, which subordinate meaning is let taxes be paid where profit is made," said Tudose.
He went on to say that at the same time, as early as last week he, the Finance Ministry and the National Tax Administration Agency (ANAF) decided to achieve "full integration of everything taxation for agencies means."
"We have to know, through real-time information flows the movement of money, linking it to a European system that has started working. We will be able them to see when and if money leaves the country unjustifiably so that together with the European colleagues we may find a way to tax such trail," added Tudose.
He also explained why a solidarity tax has also been scrapped.
"Such tax is like a scythe that does not allow you to mow the grass selectively, as all these are weeds. Such a tax would virtually strike the honest tax payers. We will be seeking avenues for those who believe they are smarter than the government will no longer be so," said Tudose, adding that national leader of the Social Democratic Party (PSD), major at rule, Liviu Dragnea, accepted the decision on the solidarity tax.
Prime Minister Mihai Tudose also said on Monday in respect of the national budget revision that there are ministries, such as that of information technology, that have a six-month execution level of 2 percent, mentioning that the earmarked amounts for failed projects will be re-allotted.
"The budget revision has been mentioned today at the coalition's meeting. Mr Finance Minister presented a plan on the re-allotment of money at some ministries, because, unfortunately, we have ministries with a six-month execution level of 2 percent. I am giving an example: the Information Technology Ministry, (...) 2 percent execution level. Unfortunately, certain projects have already been failed and then the money in question will be re-allotted at the same or other ministries," Tudose said, after a meeting of the ruling coalition.
Asked about the National Defence Ministry budget execution, Tudose said: "At the Defence Ministry, the execution level is very good now. We aren't talking about an execution level in the procurement area yet, because, as you know, there only have been a few days since the US Congress came up with yet another offering (...) the possibility of purchasing missiles."
The National Liberal Party (PNL) is asking the Government to eliminate from the governance programme "the fiscal-budget aberrations" and to come up before Parliament to rectify the programme, PNL national leader Ludovic Orban said on Monday.
"We believe the business turnover tax, the solidarity tax, the tax on households renamed the tax on aggregate income, the over-taxation of products that pose health risks, banning two-time insolvent people from doing business, levying social security contributions for part-time workers against the minimum wage, the over-taxation on energy and communications as well as a separate VAT account - are all measures against the business environment. We are asking the government to give up these measures. Moreover, we are asking them to come up before Parliament and clear the governance programme of the fiscal-budget aberrations they introduced over night without announcing they plan to modify the governance programme, (...) some measures seriously affecting the business environment and risking to jeopardise the Romanian economy," Orban said after a meeting of the PNL Executive Bureau, which took place at the Parliament House.