Authorities’ decision not to increase the fiscal burden for businesses offers the private sector the time and space to recover from a difficult economic cycle , according to the American Chamber of Commerce in Romania.
Beyond the pressure of the private sector, potential tax increases will send a strong negative signal to investors and will result in a significant decrease of Romania’s economic attractiveness and competitiveness at a regional and European level.

“Authorities should avoid measures that will suppress the competitive advantages of Romania, such as highly skilled technical personnel, who, in the context of certain fiscal incentives, have drawn major foreign investments in our country. Other high priority measures would be reducing the receivables for companies, through VAT refund of paying outstanding debt to the pharmaceutical industry and to the healthcare system in general”, said Ionut Simion (photo), the Chairman of AmCham Tax Committee.

AmCham Romania continues to reaffirm the need that the measures adopted by the authorities be focused on improving tax collections and taxing the grey economy. “These important mechanisms for increasing budget revenues must be correlated with reduced and rationalized public spending. Otherwise, the announced salary cuts and restructuring in the public sector can be interpreted only as a «sacrifice solution», generating social turmoil. Amid a difficult economic context, such measures have a negative social impact; therefore, their implementation must be integrated in a larger reform strategy of the central and local administration focused on long-term results”.

In AmCham’s vision, the modernization of the fiscal legislation and flexible labor relations are among the top priority measures that have to be implemented in Romania, in view of the economic recovery and ensuring a friendly investment climate.

Therefore, AmCham Romania, along with other business associations, has submitted to the relevant authorities recommendations regarding the fiscal strategy measures, as well as a proposal to amend the Fiscal Code and Fiscal Procedural Code, whose modernization can no longer be postponed.

AmCham has also developed and submitted proposals to improve legislation governing the labor relationships, and said it hopes that the revision of its legal framework will be completed this year, in accordance with the calendar announced by the authorities.

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