Progress Report on Fiscal Policies November 14 - 20, 2017
On November 16, the Government Emergency Ordinance no. 82/2017 for modifying and amending certain normative acts was published in the Official Gazette and the draft project for the approval of the ordinance was registered with the Senate. According to the memorandum of reasons, the ordinance proposes the elimination of certain restrictions for collective negotiations with the purpose of developing collective work contracts. The transitory derogations are valid for the period between November 20 and December 20, 2017.  


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Progress Report on Fiscal Policies November 6 - 13, 2017
On Friday, November 10, the Ministry of Public Finances published the two draft emergency ordinances on the budget adjustment and adjustment of the social insurance budget, the second one for 2017. According to the documents, the Ministry of Labor, Ministry of Home Affairs, Ministry of Justice, Ministry of Health, Ministry of Regional Development and the Ministry of Education received additional funds after the adjustment.


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Progress Report on Fiscal Policies October 30 – November 6, 2017
After a week-long of speculations, on Monday, November 6, Prime Minister Mihai Tudose said that Government’s extraordinary sitting dedicated to the fiscal reforms announced at the end of October was postponed once more. Initially scheduled for Friday (November 3), then postponed for Monday (November 6), the extraordinary sitting was once more postponed and PM Tudose could not tell whether fiscal reforms are going to be included on the agenda of this week Government’s sitting. A couple of hours later, on his way to the Senate's plenum where the simple motion against him was read, FinMin Ionuț Mișa said to the press that the GEO amending the Fiscal Code is going to be discussed this Wednesday (November 8).  


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Progress Report on Fiscal Policies October 24 - 30, 2017
A draft emergency ordinance published by the Ministry of Public Finances on October 26th  and presented in a first reading in Government sitting held the same day, intends to reduce the income tax from 16% to 10% for employees, pensioners, royalties and private practices, rents, interests, leases, prizes, agricultural activities, investments and incomes form other sources. The initial measure of eliminating income tax for wages under RON 2000 was abandoned by the Government, these wages too being taxed 10%. The same legislative act regulates the transfer of all social contributions (except the work insurance contribution – formerly known as the solidarity tax) to employees. According to the document, 35% of the gross salary will be retained by the employer in the employee’s name


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Progress Report on Fiscal Policies, October 16 - 23, 2017
On Monday, October 23, while attending the Government Hour in the Chamber of Deputies, FinMin Mișa announced that the split VAT measure will be optional for all economic agents, with the exception of those in insolvency and those who do not comply with VAT-related tax obligations for a longer period of time. Minister Mișa said that these changes are the result of consultations with the business environment. The split VAT measure, as explained by Mișa, aims to remove unfair competition and the advantages some economic agents gain from not paying their due taxes. During the political debate in the Parliament, USR, PNL and UDMR asked for the Split VAT Ordinance to be dropped. UDMR announced that their parliamentary members will vote against the measure. Through the voice of Varujan Vosganian, ALDE announced that they were the ones to oppose the mandatory character of the measure within the ruling coalition, and who proposed that split VAT be optional for all companies, except for those under insolvency or with a bad fiscal history.


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