Romanian Senate Rejects Tax Exemption For Pensions Below RON2,000

Last week, the Senate rejected with 54 to 49 votes the president’s reexamination request and ruling democrat liberals argued that the request was put to the vote without being debated.

Basescu’s request was debated and put to the vote again on Monday and the bill lifting the income tax off pensions below RON2,000 was rejected.

The reexamination request will be sent for debated to the Chamber of Deputies, which will take a final decision on the matter.

Last year, the lower chamber passed two bills lowering VAT on basic foods to 5% and lifting the income tax off pensions below RON2,000.

Although none of the bills was backed by the Government and both had been previously rejected by the Senate, they were passed with a large number of votes in the Chamber of Deputies. Lawmakers said after the vote they made a mistake and thought they were voting to reject the bills.

In November 2010, Basescu said he would send the two bills back to the Parliament to be reexamined.