Salary tax revenues increased due to higher pays, expert

The almost 14% in the salary tax revenues in the 2017 national public budget compared with 2016 is due to the about 11% rise in salaries.

Requested by IPN to explain such a trend, Corina Gaibu, expert of the Institute for Development and Social Initiative “Viitorul”, said the nominal salary in 2017 rose at almost the same pace as the salary tax revenues did. It is normal for the revenues from income and other taxes related to pays to increase when the nominal salaries grow.

“The average salary was about 5,800 lei and in 2016 it was by 11% lower. Normally, if the salary fund in 2017 increased, the taxes paid from this fund were higher,” stated Corina Gaibu.

According to the National Confederation of Trade Unions, the changes made to the legislation and the measures taken to fight the underground economy led to a rise of almost 14% on 2016 in the amounts collected into the national public budget as salary tax revenues. The amounts last year came to over 3.5 billion lei.

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