Romanian Social Democrat (PSD) leader Marcel Ciolacu, the speaker of the Chamber of Deputies likely to take over as prime minister in May under the ruling coalition protocol, argued that "such a low" capital taxation can no longer continue in Romania and assured that an amendment in this regard would be introduced in Parliament by his party.

Asked about a proposal for reducing the contribution to the public pension system (CAS) from 25% to 20%, inked by Social Democrats' ruling partners – the Liberal party (PNL) – Ciolacu said that he supports in principle a lower labor taxation, but, at the same time, it is not possible to continue with capital taxation as low as it is in Romania.

"We cannot continue with labour taxation of 45% [social security, health insurance and income tax], but we also cannot continue with capital taxation as low as it is in Romania. If we want to get to an economy like Germany's, we need to see exactly what the principles [of such an economy ] are. I understand these proposals; I agree with them; I am firmly convinced that, however, the PSD parliamentary group will come up with a tax on capital to create a fair balance," the PSD president said, quoted by Economica.net.

(Photo: Sabin Cirstoveanu/ Inquam Photos)

iulian@romania-insider.com