Romania wants to apply extra 16% tax on public wages above EUR 1,000

After recently announcing that it will restore public wages to the pre-crisis level, the Romanian Government also decided to apply an extra 16 percent tax on the revenues of state employees with salaries exceeding RON 4,500. The system could be applied starting 2013, when the Government from the Social Liberal Union (USL)- if USL gets the majority in elections- plans to apply differentiated tax levels. The Government would thus apply an extra 16 percent tax, apart from the existing flat tax of 16 percent, for salaries higher than EUR 1,000 per month, according to Prime Minister Victor Ponta. He called this a 'solidarity tax' required during a difficult time, which would not bring a lot to the state budget, but send a solidarity sign. Before a decision is made, the Government needs to learn how many people exceed the RON 4,500 threshold in the state apparatus. editor@romania-insider.com