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April 19, 2021

FIC insist on maintaining levels of VAT and flat tax

The foreign investors insist on maintaining the taxes, VAT and the flat tax included, at the current level, and say that the increase of the revenues to the budget is possible through the negotiation of the taxpayers’ taxes and an efficient collection of the taxes and dues, Mediafax informs.

“In Romania, the costs have already risen by 3-4 per cent through the risk premium associated to the country. Under these circumstances, we cannot think to the rise of the taxes. On another hand, there are opportunities, such as attracting European funds, and the money from the IMF, but a bigger coordination is necessary,” Wilhelm Simons, members of the Foreign Investors’ Council (FIC) said on Friday. He added that another objective of the fiscal policy should be the predictability and the continuity. The opinion of the foreign investors is in contradiction with the announcement made by Traian Basescu regarding VAT increase from 19 to 22 per cent starting next year. President Traian Basescu said recently in a discussion, behind closed doors, with the foreign investments that VAT could be increased in 2010, declaring, according to sources who participated to the meeting, that he prefers the VAT rise to the increase of the flat tax. “Other countries also change the governments, but the new ones observe what the previous government has done,” Simons added. In the opinion of FIC members, the alternatives to the increase of the revenues to the state budget are the extension of the taxation base, through the identification and reduction of tax evasion, a more efficient collection of taxes and dues, and the growth of the role of prevention and fiscal conformation that the authorities should have, which would define a medium and long term fiscal policy.

“The introduction of an economic re-launching fiscal legislation, which would allow for instance the taxpayers to declare voluntarily their real tax obligations, and their possibility to negotiate directly their taxes with the fiscal authorities, are two essential elements meant to encourage and sustain the taxpayers and to assure the revenues to the budget,” said Serban Toader, member of FIC Managing Council. Also, the adoption in due time of the normative acts for the enforcement of the legal provisions approved through laws or ordinances or the monitoring of the enforcement of the principle of fiscal responsibility are solutions for the improvement of the revenues to the budget, FIC representatives say. “The short term measures adopted without the quantification of their medium and long term effects are like a medicine taken for a flu because of which you get a heart disease in two-three days,” Toader said. FIC members also request higher transparency between authorities and taxpayers through the enforcement “to a bigger extent” of the law regarding the decisional transparency and permanent consultations with the business circles.

Still attractive

Romania remains attractive for the European investors, especially in the domain of road infrastructure, agriculture, and energy from renewable sources, although the image of the state is “stained” by political disputes, while the economy is affected by recession, an AFP analysis shows, quoted by Mediafax. “I don’t believe that the interest for Romania is low. The companies give up certain plans, but this aspect is connected chiefly with the global economic crisis than with the political situation,” explained Hans Smaling, economic and commercial adviser, Embassy of the Netherlands in Bucharest. The same opinion is shared by several French, German, Austrian analysts, questioned by AFP, who consider that the road infrastructure, agriculture and the sector of energy from renewable sources continue to be attractive elements for investors.

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