Romanian lawmakers draft bill for holiday vouchers in private companies

A group of lawmakers from the ruling parties in Romania drafted a bill by which all the employees in the country, including those in private companies, would be extended from the state budget holiday vouchers starting in 2024.

"We believe that this mechanism [that exists in the public sector] can be extended for those approx. 4.2 million employees in the private sector, so that they can benefit from vacation vouchers financed from the state budget, in the amount of RON 1,450 per year, out of the amounts that they already contribute in the form of income tax and/or social insurance contributions," reads the memorandum drafted along with the bill, Adevarul reported.

The budgetary effort for granting holiday vouchers to approx. 4.2 million employees in the private sector is estimated at RON 6.1 bln (EUR 1.2 bln, 0.4% of GDP).

However, the authors of the bill claim that the overall effect is positive because some 60%-65% of the money will return to the state budget in the form of VAT, taxes, salary tax, and profit tax. "The difference [to 100%] will be found in the economic effect generated," the statement reads.

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