Former Romanian finance minister, reluctant about global tax on households

The Parliament hasn’t been informed on the mechanism to introduce the global tax on households, and the Parliament’s specialty committees haven’t been invited to take part in the talks on this topic, said former finance minister Eugen Teodorovici, president of the Senate’s budget and finance committee, reports local Mediafax. There have been discussions that the Finance Ministry plans to give up the 16% flat tax starting next year and introduce a differentiated tax based on the global annual income of each household, which would range between 0 -10%. Besides that, the Government would hire 35,000 tax consultants that would help contributors sort their taxes out. Finance minister Viorel Stefan said that the average wage of such a consultant would be RON 10,000 (EUR 2,200). This could lead to a total spending of RON 4.2 billion (almost EUR 1 billion) per year for the Romanian state. “We need to see how many such consultants will be needed, how they will be paid, what are the conditions for recruiting them,” said Eugen Teodorovici. All these elements must be very clearly described by the finance minister and then clearly communicated to the population, he added. EY: Romania’s new global household taxation would impact budget revenues editor@romania-insider.com