Gov’t, IMF did not discuss taxing all pensions, says PM Boc

The Government has not discussed with officials of international financial institutions the prospect of taxing all pensions in Romania, Prime Minister Emil Boc told Radio Romania Actualitati public station on Wednesday.

He also said that the Government will not take additional austerity measures, insisting that the positive effects of the austerity measures approved so far – cutting public wages by 25 percent for six months and recalculating special public pensions – will be visible in 2011 and 2012. ‘We have not discusses taxing all pensions.

I can say today, as the IMF also said, that the bad news about tough measures has somehow been exhausted and now we are at a point where we can hope for the better and hope that 2011 and 2012 will be the years when we reap the fruit of these good measures that we were all compelled to take,’ said Boc.

The amount of public pensions exceeding RON 1,000 is currently subjected to a 16-percent tax. Boc admitted that the population will feel the difficulties of the austerity measures throughout the year. ‘There will be months of sufferings and hardships throughout the year.
That is why we have discussed with the ministries so that we may make things easier for the people who are indebted to banks, to cancel the early repayment commission so that people may be able to reschedule their loans and cope with their spending, so that we seek flexibility with banks to avoid people losing what they got on credit,’ said Boc.

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