Romanian Social Democrat leader argues for higher capital taxation

The president of Romania's Social Democratic Party (PSD), Marcel Ciolacu – supposedly the coming prime minister starting May this year – unveiled during a visit to Brăila this past weekend that it is possible that the taxation of companies may be tweaked so that large companies will pay a tax of at least 1% on turnover.

"There will be no higher taxes on Romanian capital, on SMEs, on HoReCa," Ciolacu assured, Ziarul Financiarreported. But "it is just fair that large companies operating in Romania should pay at least 1% of their turnover, just like Romanian companies. It is our duty to create this competitive balance," he added.

Marcel Ciolacu argued that Romania has the highest labor taxation in Europe, at 45%, and that there is a need to create a balance between labour taxation and capital taxation.

Another topic addressed by Marcel Ciolacu refers to the tax on dividends, which the PSD president considers that it is currently too low. "On dividends, we have a tax of 8% in Romania, in Germany, it is 26%. You cannot take dividends from the company, then loan your own company and take interest. We have the duty to impose social equity."

(Photo source: Facebook/Marcel Ciolacu)