RO FinMin ponders phasing out income tax, social contribution waivers

The Minister of Finance, Dan Vîlceanu, announced on Tuesday, September 28, that he is contemplating the option of eliminating the exceptions from the payment of tax and income contributions income tax and social security contribution waivers for sectors such as IT and construction.

In an interview for Antena 3, asked whether the government plans to increase the VAT in 2022, Minister Vîlceanu said: "out of the question; we will not increase the VAT. But there is a discussion about the waivers on the income tax and the social contributions."

Asked if he is speaking about the employees in the sectors of IT, research, and construction, Vîlceanu said that "there are several categories. All the waivers regarding the income tax and the contributions, plus the waivers for the local taxes and fees, account for somewhere around 3% of GDP. It's a very large amount. It is a matter of fairness, just fairness. Some pay, others do not (…) It is an option, I mean [we would waive] all exceptions. In fact, we have been criticised by the Commission and other international bodies."

He also said that a final decision would be taken after discussions with the representatives of the respective sectors, Economedia.ro reported. "All things must be discussed before. We first talk with the industry representatives, and then we see."

(Photo: Gov.ro)