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Romanian Opp Liberals To File Motion Against Labor Ministry Over Higher Taxes On Copyright Income

Romania’s opposition Liberal Party will submit a simple motion against the measures recently taken by the Labor Ministry, which increase taxes for people who gain income from freelance activities, party head Crin Antonescu said Monday after the meeting of the party’s central political office.
Romanian Opp Liberals To File Motion Against Labor Ministry Over Higher Taxes On Copyright Income
Nicoleta Nicolae
06 sept. 2010, 14:25, English

Antonescu stressed that liberals only want these measures to be scrapped, adding it is less important whether further decisions to this end will entail the dismissal or resignation of the labor minister.

Liberals had voiced their intention to submit the motion long before Mihai Seitan was sacked as labor minister and replaced with Nelu Ioan Botis.

The party’s spokesperson Mihai Voicu last week told MEDIAFAX that liberals are determined to submit the motion against the ministry if the new labor minister fails to tackle the situation caused by increased taxes on copyright income.

According to a draft Government Ordinance, Romanians who gain income from freelance activities will pay, starting with 2011, social security contributions of at least 25.36% and up to 35% of their income, nearly double from the current level of contributions. Under current law, they pay social security contributions in the amount of 16.5% of their income.

Furthermore, the pension insurance contribution is to increase to 24.43% from 10%, the health insurance contribution is to increase to 8.35% from 5%, while the contribution to the unemployment aid fund is to increase to 0.78% from 0.5%.

The draft also introduces a contribution of 0.85% for vacations and social health insurance indemnities and an insurance contribution of 0.15%-0.85% for labor accidents and professional diseases.

The draft ordinance amending Law 571/2003 on the Fiscal Code was put up for public debate on Thursday. It should enter force on January 1, 2011, and be applicable to income earned in January 2011.