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November 20, 2019

New Tax Code will continue to stimulate consumption next year

Romania’s new Tax Code will continue to stimulate consumption in 2016 and its effects will be felt in 2017 as well, but economic growth exclusively based on consumption is not sustainable in Romania in the long run, General Manager of BCR Pensii and Chairman of the Administration Board of the Bucharest Stock Exchange (BVB) Lucian Anghel told a tax conference on Tuesday in Bucharest.
‘It is clear that consumption will be stimulated next year as a result of the new Tax Code. It will be stimulated in addition to the stimulated consumption this year. Its effects will be felt in 2017 as well. It is important to see how much imbalances, the trade deficit, will flame up,’ said Anghel.
He added that had consumption been of products made in Romania, economic growth would have been even larger and the economy would have grown soundly.
The Romanian Government this October passed several changes in the Tax Code, including cuts in the Value-Added Tax for water to 9 percent; cutting taxes on dividend gains from 16 to 5 percent; changing taxation of microenterprises and providing tax exemption to pre-university schools.
Experts in fiscal matters and the business environment on Tuesday discussed the new provisions in Romania’s Tax Code at a conference called ‘Business to more Business’ organised by Doingbusiness.ro and Kompass Romania.

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