BUSINESS

State might lose 12 times more than what would gain from taxing IT earnings

Government eliminating income tax exemptions to IT programmers is wrong, as the state would stand to lose 12 times more money than it would gain from enforcing such measure, Mediafax quoted Asesoft IT Group President Sebastian Ghita as saying. “I believe the measure to be deeply wrong. These people work for Romania and each of them brings tens and hundreds of thousands of euros into Romania, and they are part of what we call the ‘top industry’ in the country,” Ghita said. According to Asesoft estimates, Romania might earn less than EUR 10 M a year from taxing the incomes of IT programmes. “To make a comparison, we estimate Romania will at the same lose between EUR 120 M and 150 M yearly. The losses will be in the form of un-drawn funds and sums of money Romanian companies, and the Romanian state especially, will have to pay abroad. Romania should think strategically now since insufficiently thought-out measures could lead to big losses in the medium and long run. Sometimes, in order to keep such major an advantage as Romanian programmers are, it is rather better to borrow. Otherwise, the loss will be fast, strong and hard to recover,” Ghita said, who believes programmer incomes being taxed would lead to lower salaries, which in turn would make both IT people and companies leave Romania.

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