Romania’s Govt. to endorse controversial tax changes on Dec 21

The controversial bill that includes among others the tax on the banks’ assets, will most likely be endorsed on Friday, December 21, the president of the senior ruling party (Social Democratic Party, PSD) Liviu Dragnea said. Notably, the Economic and Social Committee (CES), a consultative body that includes representatives of the unions, employers’ associations and civil society, issued a negative opinion on the bill, local Mediafax reported. “It seems that they [the government] will pass it tomorrow. The phrasing has been revised here and there, but the essence remained the same. Nothing bad will happen to the second pillar [of the pension system]. The people will be given a chance to invest their money, but, at the same time, the existence of those pension funds is by no means at risk”, Dragnea said. Romania’s finance ministry published on December 18 a draft emergency order including a multitude of initiatives with major economic impact. The 58-page bill includes among others the ambiguously defined [“tax on [bankers’] greed”](/romania-supplementary-tax-bank-assets/), requires natural gas producers to charge a maximal price to households and companies and allows the government to lend to a newly set up Development and Investment Fund (FDI) managed by the National Prognosis and Strategy Commission (CNSP) up to EUR 10 billion, at a preferential interest rate of 1%, for financing various social projects. Foreign and Romanian investors warn Govt. against excessive taxation plans Romanian companies warn supplementary taxes will surface in end-user prices editor@romania-insider.com (photo source: Gov.ro)