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Extra fuel excise and the over-taxation of part-time employment contracts, eliminated by Chamber of Deputies

camera deputatilor plen

The extra fuel excise and the over-taxation of part-time employment contracts will be eliminated starting with January 1, 2020, according to a bill for the amendment of the Fiscal Code, adopted on Wednesday by the Chamber of Deputies with 280 votes "in favour", one vote against and two abstentions.

Thus, from January 1, 2020, the over-taxation of part-time employment contracts would be eliminated, in order to apply a calculation basis for social contributions and health insurance contributions depending on the salary earned and not based on the minimum gross wage per country.

The bill, adopted by the Chamber of Deputies as a decision-making forum, was initiated by 53 Liberal MPs.

During the debates, National Liberal Party (PNL) deputy Robert Sighiartau emphasized that the project represents "a reparative measure, beneficial" both for the living standard of Romanians and for the Romanian economy. He added that although the reason invoked for introducing the extra excise was the use of the money collected for the construction of highways, this did not happen. With respect to the elimination of the over-taxation of part-time contracts, Sighiartau stated that it is unacceptable "to work two hours in a normal state and pay taxes for eight hours".

On the other hand, the Social Democrat Lia Olguta Vasilescu said that by passing this law, 4.5 billion lei are lost from the state budget.

"1.5 billion from the insurance budget, for part-time taxation, and three billion for the extra excise. (...) Immediately after we introduced this part-time taxation on the minimum wage, in the first month, as many as 89,000 labor contracts went from the informal economy to the formal one. Moreover, in the coming months, another 200,000 contracts were transferred to the formal one," she said.

Attila Korodi (the Hungarian Democratic Union of Romania) said that the Romanian state must have the capacity to check all those who hire part-time, not to introduce an over taxation that risks "blocking many companies".

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