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Advantage of contributions' transfer - reduction in pension deficit (FinMin)

teodorovici

The transfer of contributions from the employer to the employee is applied to reduce the very large deficit in the pension area, from 18 billion lei in 2015 to 7 billion lei this year, Minister of Public Finance Eugen Teodorovici told the public television station on Tuesday evening.


"The main argument [of shifting contributions from employer to employee] is that the deficit in the pension area, which is very high in past years, will be significantly reduced. In 2015, the pension deficit was 18 billion lei, and now it is reducing to 7 billion lei this year, which means a very, very big difference. Also, the fear of the employee being at risk of not having a pension after the payment of contributions will disappear," Teodorovici said.

Asked why there is a need for frequent changes to the tax system, the minister of finance said that Romania is in good fiscal position, regionally and locally, but the system needs to be simplified, de-bureaucratised.

"We want an aggressive simplification [of the fiscal system] in the good sense. All taxpayers have to expect good things in terms of the budget-fiscal area. We will not have new taxes etc this year. Next month you will see many such measures that will be very, very well received by both the business milieu and individuals. Romania, in the local and regional context, is in a good fiscal position. Simplification is needed. For example, for every envelope that tax authorities send, they pay about 3 lei and something per operation, so we have 10 million euros a year.

There will be clear simplification actions. The Form 600 disappears and out of five approaches only one will be left, it will be an online version, simple to fill in, without any other problem or complications, including the 2% transfer to an NGO. In this single form there will be a section devoted to the possibility of transferring two percent to NGOs," explained the official.

AGERPRES .

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