Special pensions, again at the Constitutional Court: what happens to fabulous values

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Special pensions are a very hot topic in the collective mentality of Romanians and, with a little luck for some, it could decrease significantly.

The first attempt to reduce special pensions failed more than half a year ago due to a decision of the Constitutional Court. That decision stems from the fact that the law voted in parliament was misspelled, quickly before. It was a populist movement with minimal chances of success.

Now, the second attempt to reduce special pensions is being challenged by the People’s Advocate at the Constitutional Court. CCR judges decide today whether or not the law that provides for the taxation of special pensions by 85% is constitutional. In Renata Weber’s opinion, we are talking about double taxation, one that would be illegal.

As a reference, the plenum of the Chamber of Deputies adopted, in June, the law that provides for the taxation with 85% of special pensions of over 7,001 lei and with 10% of those between 2001 and 7001 lei. Specifically, the difference between the special pension and the one based on contributivity will be taxed.

According to the appeal submitted by the People’s Advocate to the RCC, we are not talking about a taxation of pensions, but about a double taxation. “It simply came to our notice then. On the one hand, it is a question of an unfair settlement of tax burdens. It’s called taxation of pensions. In reality, we are dealing with a tax, because the taxes are imposed on you by the state when they offer you a service “, explained Renate Weber, quoted by Mediafax.

Another argument for which this taxation of 85% could be unconstitutional is related to the fact that it could be perceived as an overtaxation, compared to pensions between 2000 and 7000 lei which are taxed at 10%. “In addition, this taxation of 10% for these pensions between 2001 and 7000 lei and 85% of over 7001 lei. Or there is a very clear principle of non-discrimination that says everyone should be treated equally. Here we are not talking about a progressive tax on all incomes, but only on one category, or something like that, in our opinion, is unconstitutional “, Weber thinks.

The slightly strange part of this context is that among those who benefit from special pensions in Romania are the judges of the Constitutional Court.


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