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March 4, 2021
BUSINESS

SMEs Fair opens amidst deep economic crisis

The support for SMEs is too small compared to what they represent in economy, according to the Minister in charge, Constantin Nita.

Government will provide additional support measures for companies, such as not charging tax on the reinvested profit and reducing number of taxes, equally realizing that not all the decisions adopted so far have been positively regarded, PM Emil Boc said yesterday in the opening of the Fair for SMEs – TIMM 2009, organized at Romexpo.

“I realize that not all the measures we have adopted were welcomed. Yet, they were designed in a set to prevent, case by case, or to remove fiscal evasion and to support the activity of companies in difficult conditions”, Boc said. He reminded that the executive has avoided to raise VAT and the single taxation quota and it paid the government liabilities to companies.

PM Emil Boc added that the Government is currently drafting the provisions addressing non charging of the reinvested profit and he assured that no changes would take place in 2009 as to VAT, single quota and volume of contributions to social insurance.

“We work at the promises related to not charging the reinvested profit and this measure shall be adopted by the Government in this respect. We already conducted a first assessment regarding the number of taxes, duties, para-fiscal tariffs, we already reduced 176. Until May 14, we shall already have the normative acts to diminish or reduce some of them in order to exempt the business environment from these taxes, which are time and money consuming, and cost us more to administrate them than the revenues collected from these taxes”, the official mentioned during TIMM.

The SMEs should be granted more importance considering that they acocunt for the largest share of the economy, as mentioned, in his turn, by the Minister in charge, Constantin Nita, who believes that there are no sufficient funds allotted for this sector. He mentioned that the government was trying to “restore the rights” for this sector, but unfortunately, there are no funds to support SMEs. In spite of the crisis situation, Nita recommends the increase of exports. “I insist that SMEs will exit the country. There are Romanian products which are not even known in the country, least abroad. We need to raise exports”, the Minister for SMEs said.

hopes for resuming lending, smes development

The PM reminded that the total volume of EUR 13 bln., borrowed from IMF, will be deposited with National Bank of Romania, with the purpose to “unfreeze” lending, and EUR 5 bln. from the EC shall be used to finance the budgetary deficit. He mentioned that the funds for IMF will be used to consolidate the foreign currency reserves of the country.

In his turn, SMEs Minister, Constantin Nita, interpreted the approval of the agreement with IMF as a reason for the banks and BNR to cease maintaining high interest levels. He mentioned that there were several companies which needed funds for production, and the banks treat them superficially. Nita said that he would insist for Trade Registry to return to the coordination of the Ministry he is responsible for, the revenues collected by this being used for SMEs. The Ministry for SMEs conveyed a memo to the Govenrment in this respect, but the discussion was postponed to wait a decision of the coalition. PSD leader, Mircea Geoana, attending the event, indicated the Parliament was the one which could decide in this respect.

EUR 196 M, budget earmarked for non refundable funds

160 companies participate in the Fair for SMEs, which take place during May 6 – 10, at Romexpo. During the fair, the Ministry also launched the guides for accessing European funds related to provision of non refundable funds for investments for SMEs. The financial support is granted for investments up to RON 1.75 M and for investments whose value ranges from RON 1.75 M to RON 6.45 M. In one month, companies will have the possibility to submit projects, within this program, in one month, the total budget earmarked being EUR 196 M. Apart from the European funds, the SMEs can have access to seveal national programms, financed from the state budget.

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