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Romania could consider a progressive tax system to reduce the gap between people with very high incomes and people with very low incomes, secretary general of the Organization for Economic Cooperation and Development (OECD) Mathias Cormann said on Tuesday, at the launch event of the Economic Study 2024 for Romania developed by the OECD, at the gov't venue.
As far as the tax and transfer system is concerned, we are also looking at the area of poverty. We see that the level of poverty is still decreasing, but it is still much higher than other countries in the area, in the OECD. Romania should take into account income disparities in order to reduce poverty, especially in view of the unitary taxation system, and perhaps the introduction of a progressive tax system could also be considered to reduce the gap between people with very high incomes and people with very low incomes. However, there are very high, disproportionate expenditures of social protection, and these things have an effect on the degrees of disparity in the economy. It is an aspect that must be taken into account, Mathias Cormann said.
He said women's participation in the labour market must be increased. According to him, only 54% of women of working age were employed, compared to more than 70% of the OECD average. At the same time, increasing women's participation would have the effect of sustaining the economy and would also be able to cover labour needs in the economy.
On the other hand, Mathias Cormann also stressed that the reforms to be implemented must take into account Romania's objective of reaching carbon neutrality by 2050.
Another important pillar is improving fiscal support to move forward with the energy transition.
In conclusion, Romania's reforms are proceeding at a good pace. You are a beautiful country, on the right track to conform to living standards in OECD countries. We support you in your efforts to continue on the right path and we look forward to continuing to work alongside you and the Romanian Government, both now and in the future, to help you achieve the best results for your people, Mathias Cormann concluded.
