SOURCES: Coalition leaders decided to introduce changes in property tax based on value / Tax deductions for wages up to 4,500 lei gross / No agreement on surcharging large companies

Coalition leaders have not reached an agreement on the solidarity tax, rebranded as a contribution to health and education, which would be applied to companies with a turnover of more than 100 million euros, political sources told G4Media.

Although the social democrats are keen on introducing this tax change, the liberals are opposed, given that there are around 300 companies in Romania that would qualify for this tax.

The PSD is calling for a solidarity tax of 0.5% of turnover. The matter has not been concluded, according to the source.

Instead, the leaders of the governing coalition have decided to apply tax deductions for people with salaries of up to 4,500 lei gross a month.

Initially, the Social Democrats wanted deductions for any salary up to 6,000 lei gross. The Liberals claim that the deduction scheme already reaches 3 billion lei in the agreed form.

For minimum wage earners, a zero income tax is being considered. For salaries above 4,500 lei, the income tax remains at its current 10%.

The tax on buildings will be calculated according to the value of the property, which is listed in the notary scale. Local authorities may apply a tax of between 0.1% and 0.2% of the reported taxable value.

This means that in big cities the tax on buildings could go up, while in small towns or rural areas it could go down.

It was also agreed to apply an increased VAT from 9% to 19% on drinks containing sugar.

Translated