PSD's Ciolacu says PM Orban now has necessary resources to double child allowances, increase pensions

Acting national chairman of the Social Democratic Party (PSD) Marcel Ciolacu has said that Prime Minister Ludovic Orban now has the necessary resources for doubling child allowances and increasing state pensions, as a law on pension taxation has cleared Parliament.

"For six months, PSD has been waiting for Mr Orban and the PNL [National Liberal Party] Government to come up with an emergency ordinance regarding the taxation of special state pensions, especially since they announced that there was not enough money to double the allowances and increase the pensions of Romanians. Under a bill submitted by PSD, PSD today drastically taxed all special pensions, up to 85% of their value. I want to thank you all lawmakers because the bill passed unanimously and to publicly tell Mr Orban that from this moment he has the financial resource to double child allowances and increase the pensions. That reason no longer exists," Ciolacu said on Wednesday at the Parliament House.

At a plenary session on Wednesday, the Chamber of Deputies passed, 307 to 1, a bill amending and supplementing Law 227/2015 on the Tax Code regulating taxation of old-age income and allowances.

Under a joint amendment of the Social Democratic Party (PSD), the National Liberal Party (PNL) and the Save Romania Union (USR), state pensions of up to and including 2,000 lei are tax exempt, those between 2,000 and 7,000 are taxed 10% the difference between 2,000 lei and the actual pension, while state pensions in excess of 7,001 lei are taxed 85% of what exceeds the amount of 7,001 lei.