Exceptional circumstances often lead to extraordinary taxes. Thus, the high debt of Romania led to the legislature introducing a witch tax in 2010. Until that time, no income tax was due for such services. And how did the affected taxpayers receive this? Let's see...

In general, German tax law is considered one of the most complex in the world. Much of the global tax literature should be German-speaking. Austrians and Swiss are happy to point out that this is due only to an insignificant extent to their national legislation. But the scope of tax regulations in Germany makes sense, thus testifying to mature considerations about the exact formulation, in particular about the wording of the laws, which should ideally be clear. Whether the meaningfulness is coherent in the overall context and thus actually serves the underlying intention and overall situation is another question.

At least this is not a purely German feature (see the example nightingale tax), if you compare it with foreign tax law. Because even beyond Germany we can discover some curiosity in tax law (for example the beard tax). In this series we classify with this contribution the so-called witch tax. But anyone who believes that this is a purely medieval invention, or even another punishment of the Inquisition, in order to persecute men and women who are unadapted or otherwise unpopular, also with regard to their finances, is mistaken. In fact, the witch tax we are now reporting comes from our present.

Romania introduced the witch tax in 2010. Until then, fortune-telling and cursing, as well as magic protection from it and all other kinds of hocus pocus were considered purely private activity. The executors even spoke of a certain kind of charitable care. In fact, people who offered such services (we would like to doubt whether they actually carried out them) received a lot of money from their clients for their efforts. Therefore, a look into the social significance of oracles and magic in Romania with regard to the introduction of the witch tax is quite worthwhile.

The real socialism and its accompanying dictatorship had not been able to forge a modern society from the already heavily agricultural country for many decades. Those who lived in the countryside and did not have access to the blessings of the means of production, which were at most provided for propaganda purposes, always led a hard life. Asphalted roads, running water, even electrification, which Lenin himself promoted as an important feature of communism’s progress, were not a matter of course in village Romania. Therefore, the old structures that existed in broad circles of Romanian society before the introduction of the socialist regime have survived to the present day.

An essential element of this is superstition. Especially in older generations it is still widespread in Romania today. Even concerns about revenants and possession by unclean spirits are still considered real today. Likewise, the effects to which one is exposed when one is hit by the evil eye. No wonder, then, that sorcerers, witches, soothsayers and exorcists are still in demand helpers. In the communist regime they probably never completely disappeared, but survived in one way or another, only to emerge with new power after the end of the Ceaușescu regime.

But if you think that superstition is a purely Romanian phenomenon, rest assured that it is easy to point out a corresponding example in our German culture – even today. Please consult your horoscope.

From the point of view of the legislature in Romania, however, the introduction of the so-called witch tax has been a rather technical question. Because until then these people did not have to pay income tax for such services, because their activities could not be assigned to any profession and consequently to any trade, they had to consider how to implement this. Finally, it is clear that such a hitherto tax-free activity cannot be generally regarded as fair. Finally, a doctor of traditional medicine must also pay income tax.

So in order to introduce the witch tax, the members of the Romanian parliament have agreed to recognize witchcraft, fortune-telling and clairvoyance as a profession. As a result, they now represent a trade, which in turn is subject to income tax in general. All other kinds of magical activities, including fortune-telling and miracle healing, are equal to this. And since many women in Romania actually profess witchcraft, it is not surprising that the tax on their income has been called a witch tax.

Now one may praise the consistent recognition of witchcraft and associated services as commercial activities by the Romanian people’s representatives. But the introduction of the witch tax had a certain aftermath. Thus, the people who benefited from the tax exemption were anything but pleased that from now on they were allowed to exercise their supernatural abilities officially as a profession. Because those who earned an average of EUR 15,000 gross equals net a year, which was sufficient in 2009 in Romania to be among the top earners, still have a noticeable share of earnings to pay to the state at a general tax rate of 10%. In addition, there is 25% VAT, even if they also have to pay the recipients of services. However, this does not make the trade a bit easier for the newly created professional group.

But was it wise that the deputies attracted the wrath of the magicians by introducing the witch tax? In any case, the reaction of those affected was anything but moderate. If the parliamentarians and civil servants who are connected with the witch tax are themselves superstitious, they must now beware of curses, curses and other hardships. Indeed, threats were made at that time. Even the rituals that were supposedly carried out on a voluntary basis so far, which protected Romania from environmental disasters, were to be discontinued, according to these circles. So far, however, the consequences seem to have miraculously failed.

Perhaps the realization that the introduction of the witch tax had only positive consequences for Romania also helps to overcome the long-established superstition. Perhaps this even encourages legislators in Romania to introduce completely different taxes in order to support the notoriously cramped budget. Should we be surprised if Romania one day introduced a body juice tax for vampires? Hardly...