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President Iohannis on IT sector tax exemption: We must consider the introduction of taxes, maybe progressively

Klaus Iohannis

President Klaus Iohannis said on Monday that the idea of the equal tax treatment is "basically true", but in the case of the IT sector, where salaries are exempt from the income tax, the authorities need to take into account the fact that this sector has increased in the past ten years from "something insignificant to 6 per cent of the GDP."

The head of state was asked if the tax exemption for those working in the IT field should be canceled, in the context in which Prime Minister Ludovic Orban stated that all citizens should benefit from the same tax treatment.

"Basically it is true, any profit in Romania is taxed. But we also need to see the other side of the matter. These exemptions that have been made in the IT sector have helped this sector to grow, in just ten years, from something insignificant to 6 per cent of the GDP, and then we have to think about whether we want to introduce the taxes now or progressively. It's a discussion that we will have," the President said at the Cotroceni Palace.

On the other hand, he said that he is not afraid of an increase in the budget deficit, in the context in which the Ministry of Finance borrowed and the pension point is set to be increased by 40 per cent as of September 1.

"Yes, I hear the warnings both from the Tax Council and from the National Bank. The money is planned for this year, but it is certainly a discussion that will take place in the coming months," said Iohannis, about the increase in the pensions.

He was also asked if he thought the pensions should be increased progressively.

"I don't think that we are going to clarify the issue with pensions this evening. It's a longer discussion and, unlike those who have governed without analysis and without studies, I very much wish this Government to analyze deeply, to study with great, great responsibility the whole matter. Together with the Pension House, with the pensioners' representatives, with the unions and so on, because, in the end, it is in the interest of all to find the best solutions for motorways and pensioners," said Iohannis.

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