Romania’s biggest companies, such as Dacia, OMV Petrom and all the distribution chains, will pay a 1% “solidarity” tax on turnover if the Social Democrats (PSD) manage to have their proposal supported by the ruling coalition.
The tax would be levied on companies whose annual turnover exceeds 100 million euros.
It was originally considered by the PSD at the end of last year when it was estimated that it would bring RON 5 billion (EUR 1 billion) to the budget.
If applied from January 2023 with the same threshold, it will be levied on a greater number of companies and could generate more revenue not only in nominal terms, but also in real terms or as a percentage of GDP.
This week, PSD leader Marcel Ciolacu said that the turnover tax “is on the agenda” and, according to Profit.ro, there is already an agreement between the social- democrats.
“I said that the solidarity tax exists in Germany. It is on the agenda, and we will choose the best option. Just as it is in Germany,” Social Democrat leader Marcel Ciolacu said recently. .
Nevertheless, the Liberal Party (PNL) should oppose it, and for good reason. Tax miscollection cannot be solved by levying a new corporate tax that is easy to collect.
Experts reached consensus on the first steps the government must take if it wants to increase revenue – in addition to tackling tax evasion – namely eliminating all loopholes and preferential regimes that allow individuals and morals to avoid the so-called 10% “single tax assess.”