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May 18, 2021

CIR: We are waiting for measures aimed at stimulating the capitalization on domestic capital

The Romanian Investors’ Council (CIR), the representative body of the Local Investors’ Forum (FIA) Association, acknowledges and promotes performance and congratulates OMV Petrom for its outstanding financial results in 2013 – a record net profit of RON 4.82 billion (over EUR 1 billion). “We acknowledge and appreciate OMV Petrom’s contribution of EUR 3.5 billion to the Romanian economy in 2013, of which EUR 2.3 billion in direct and indirect taxes and EUR 1.2 billion in investments. It is the remarkable achievement of a company whose business is conducted in Romania and who contributes to this country’s economic growth. As representatives of Romanian businesspeople, we wish domestic capital companies can become profitable and bring direct benefits both to the economy and the citizens. When domestic business grows, economy grows, new jobs are created, and more money goes to state budgets,” a press release notes.
For these reasons, CIR urges authorities to focus on the Romanian business environment and implement measures aimed at stimulating the capitalization on domestic capital and increasing competition, to ensure economic development is stable and sustainable.  “We also welcome the Government’s decision to support the fiscal easing and economic growth measures package which includes CAS cut-backs and not subjecting reinvested profit to taxation. ‘Our voice’ was heard, as these were two of the suggestions CIR made to Romanian authorities and the joint IMF – EC – WB mission. These decisions will categorically support the business environment,” is mentioned in the same press release.
CIR’s suggestions also refer to other measures aimed at ensuring economic growth, increasing investments, and enhancing the competitiveness of Romanian products, among which are the following: not implementing the 1.5 percent special construction tax before the economic impact study is completed, reintroducing the 19 percent VAT and cutting back the VAT for basic products to 9 percent, adjusting Annex 1 of GD 22/2013 by a domestic gas increase chart designed for a broader period of time, based on extending the price deregulation schedule, cutting back transport fees or introducing a commercial discount application mechanism for supplying natural gas to interruptible consumers, devising a legislation that allows for new investments in electricity production by conclusion of purchase contracts before the investment is finalized, and rehabilitating the irrigation system through a partnership between the public and private sectors, based on the idea that the state covers the necessary quantity of water and system rehabilitation / exploitation / maintenance is provided by specialized private companies.
The most important measure suggested by the FIA is supporting and promoting Romanian products.
CIR is a strong advocate of national economic re-launch, stimulating investments, raising the Gross Domestic Product, balancing import and export activities, capitalizing on domestic resources – both material and human –, and implicitly, increasing budget revenues, thus supporting state authorities.

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