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Romanian Authorities Might Consider Taxing High Pensions Progressively – Environment Min

Romania’s Environment Minister Laszlo Borbely told MEDIAFAX Saturday that authorities might consider taxing high pensions progressively starting this fall, adding that decisions in this respect depend, to a great extent, on the country’s economic situation.
Romanian Authorities Might Consider Taxing High Pensions Progressively – Environment Min
10 iul. 2010, 20:26, English

Borbely’s statement was a reaction to President Traian Basescu’s opinion that all pensions must be taxed.

The Democratic Union of Hungarian in Romania leader said that his party disagreed with taxing pensions this year, so that, following an analysis of the economic results of the austerity measures applied by the Government, a decision can be taken for next year.

The president said recently on the public radio that he hopes the Government would not resort to a new VAT hike in January 2011 without first taxing all types of income, including pensions.

The Government decided to hike the VAT from 19% to 24%, as an alternative solution to increase budget revenues, after the Constitutional Court ruled unconstitutional some provisions included in the country’s first austerity plan, which had been pushed through the Parliament.