Romanian President Opposes Lottery Staff’s Access To Cut In Co Profit

The head of state sent Monday to Parliament the request for the reexamination of the Law amending article 1 of Government Emergency Ordinance 195/2001 on the distribution of profits obtained by the National Company “Romanian Lottery.”

 

According to a press release issued by the presidency, the head of state mentioned in the request for reexamination that the normative act allows the lottery employees to take part in the company’s net profits starting with fiscal year 2009, through the distribution of 10% of the accounting profit, left after the deduction of the tax on profit.

 

Basescu said the lottery is an entirely state-owned company, active in the exclusive use of lottery type gambling.

 

"This monopoly type activity provides a constant source of income, as well as a considerable profit for the company. In the current context, I feel the amendment proposed is not adequate. The law does not contain any explanations regarding the amendments brought. For a fair decision, I feel further information is necessary regarding the amount of profits obtained by the lottery in the past years, as well as the status of personnel within this company, so that we could know what the distribution of 10% of the profit to employees would involve," the president said.

 

He also added the explanation offered by the initiators of the law, according to which "through this proposition the discriminating treatment applied to the lottery will be removed and this company will be aligned to the generally valid pattern of all other companies in national economy, when it comes to the participation of employees in the company’s net profits, through the distributionof a share worth up to 10% of net profits..." is not "completely sustainable because the Romanian lottery is unfolding a state monopoly activity, without any competition on the market."

 

"According to article 26 of Law no. 19/2000 on the public pension system and other salary rights, the social security contribution is not owed on the sums representing the employee’s participation in the profit. Therefore the taxation of these revenues follows a fiscal policy different from taxation policies targeting the other revenues from salaries, which brings a lower contribution to the state social security budget and, therefore, diminishes budget revenues," said the head of state.