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Right Force's Orban: Any increase in taxation will slow down economic growth
National leader of the Right Force Party Ludovic Orban said on Tuesday that any increase in taxation will slow down economic growth and will not bring extra government revenue, told Agerpres.
"The Social Democratic Party - National Liberal Party (PSD-PNL) government has imposed a false budget in 2023, with overblown revenues to allow reckless spending. As 'a lie has short legs', the truth came out quickly, and Finance Minister Adrian Caciu himself had to admit, as early as April 5, 2023, that there is a 20-billion hole in the budget. In the meantime, the governing coalition has effectively done nothing. (...) Romania is 'moving from deeds to words', the public space has been flooded with a torrent of statements by the leaders of the coalition and government officials that are increasingly more contradictory, without anything concrete happening," Ludovic Orban is quoted as saying in a press statement released by the Right Force Party.
According to Orban, from the statements of the coalition officials, it could be inferred that the government's solution to narrow the deficit would be to increase taxation. "The irony of it is that the government opts for an increase in taxation, despite the negative experience of last year," added Orban.
The Right Force Party's National Political Bureau warns that any increase in fees, taxes or other rates is a "premeditated economic crime, which will hit Romania's economy like a boomerang and kill the modicum of economic growth that is still in the forecast."
"A new increase in taxation will turn the government into public enemy number 1 of the private sector, the one that carries the weight of the economy. The private sector is in a very difficult situation and will not be able to bear new fiscal burdens imposed to finance disinvestment from public spending. Many companies will close, others will prefer solutions to the limits of tax evasion, and many companies will prefer to work in the dark. Any new investor who wants to invest they in Romania will think twice before investing because of the untimely increases in taxation," argues the Right Force Party.
In the opinion of this party, the problem with the government deficit can only be solved by adopting solutions that do not endanger economic development: drastically cutting expenses, increasing the absorption of European funds and improving tax collection.
