With regard to information appearing in the public space regarding the measures proposed during discussions at the Cotroceni Palace, the Social Democratic Party of Romania (PSD) wishes to make the following statements:

1. The PSD has not proposed and does not support the introduction of a tax on banking transactions. On the contrary, the PSD considers that such a measure is counterproductive as it discourages digital transactions, thereby increasing the risks of tax evasion.
2. The PSD has not proposed and does not support the extension of the ”CASS” domain or an increase in income tax that would affect low and middle incomes. The PSD does not accept under any circumstances the levying of a fixed amount of 100 lei on pensions under 3,000 lei.
3. The PSD has not proposed and cannot agree to the suspension of motorway projects or productive investments. These investments need to be prioritised, but without cancelling any ongoing projects.
4. The PSD has not proposed and does not support an increase in the general VAT rate and categorically excludes an increase in the special VAT rate on food and medicines.
5. The PSD has not proposed and does not support in any way the cancellation of tax breaks for vulnerable people (people with disabilities, people on minimum income support, or families with several children).
6. The PSD has not proposed and does not support cutting agricultural subsidies or the number of farmers who can benefit from these subsidies.
7. The PSD has not proposed and does not support an increase in fuel excise duties. Such a measure would generate inflation and affect productive sectors such as industry and agriculture.

All these measures cross the red lines that the PSD has set out since the beginning of discussions on the formation of the future government. The PSD’s proposals focused on:

1. Reducing state expenditures by merging institutions and drastically eliminating unjustified bonuses.
2. Fair distribution of the tax burden. In the first stage, this can be achieved through a solidarity tax on high and very high incomes, including special pensions. Subsequently, after the completion of the ANAF’s digitisation, progressive taxation on all incomes should be applied.
3. The need for measures to stimulate the economy in order to maintain economic growth and state budget revenues.

PSD Press Office