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Romania's PM scraps plan to enforce 'solidarity' tax for high earners

Staff Writer | July 25, 2017
Romania's Social Democrat-led government scrapped a plan to introduce a so-called solidarity tax for top earners, after an assessment had shown it would not bring in much money, Prime Minister Mihai Tudose said.
Mihai Tudose
Europe   A quickly ditched idea
It was the second tax plan to be scrapped in a matter of days. Last week, Tudose said his coalition government had dropped a plan to tax companies' turnover, due to sharply negative market reaction and criticism from centrist President Klaus Iohannis as well as local and foreign investors.

In late June, the ruling coalition had announced changes to major taxes due in 2018, including replacing a corporate flat tax of 16 percent on profit with a progressive tax on turnover.

The tax plans - and a quickly ditched idea to end a mandatory, multi-billion private pension scheme for those under 35 - beat down stocks and the leu currency.

"Today's conclusion is that we can treat this planned (solidarity) tax as 'discussed and forgotten'," Tudose told reporters.