The profit tax generates 5% of the budget revenues, while in the OECD countries, the corporate taxes represent on average 9.2% of the budget revenues, Cartel Alfa, a federation of trade unions, argues, advocating for major changes in the taxation system.
While in Romania property taxes bring only 1.8% of revenues, the average for OECD countries is 5.6%, Cartel Alfa also says in a letter quoted by Economica.net.
Enforcing what Cartel Alfa claims to be “balanced tax rates” would lead to gains for most low- and middle-income earners, it argues, supporting the case of progressive taxation. With budget revenues of only 27% of GDP, well below the European average of 41%, the Romanian state is failing in its constitutional mission to ensure the well-being of its citizens, say trade unionists.
Romania’s government to hike taxes on fuel, cigarettes to bring down budget deficit
