Romania needs an increase in the collection of taxes and a decrease in social gaps, but not the elimination of the single quota overnight will lead to this, but a series of other measures, say the representatives of Romanian Business Leaders (RBL).
Entrepreneurs say that these days they have learned that the reference tax system according to which companies have made their development plans for the coming years could be completely turned upside down.
“Yes, Romania needs an increase in the collection of taxes and a decrease in social disparities. But not the elimination of the single quota overnight will lead to this, but a series of other measures, from avoiding exceptions and unfounded exemptions economically, to rethinking the system. of social contributions, from the real fight with tax evasion, to the reform of ANAF through digitalization and professionalization “, it is mentioned in a communiqué of the most representative organization of Romanian entrepreneurs sent on Thursday to AGERPRES.
According to the quoted source, for a country already in the top of the states with the highest taxation of labor income, an additional escalation of labor costs for employees and employers will lead to a new migration of income in the gray / black area, to a new wave the emigration of specialists and an escalation of prices in many areas, a decrease in Romania’s attractiveness for any kind of investment – all against the background of the Covid crisis and the generalized labor crisis.
“Romanian entrepreneurs are trying to understand the direction in which Romania is heading with the new captains at its helm. For several months we have been swinging between the hope of overcoming the crisis and returning to the pandemic crisis. We are moving from the euphoria of approving a recovery tens of billions of euros, which should modernize Romania, when it returns to fiscal instability and unpredictability, with statements that keep us awake at night. We are in an exasperating yo-yo, “said Dragos Petrescu, president of Romanian Business Leaders.
The organization’s representatives say that there are four words that entrepreneurs try to eliminate from their expressions, but which “keep them awake at night”, namely predictability, stability, transparency and responsibility. “We ourselves make fun of them, because we have repeated them so much, that they have become clichés. And yet, they represent the four things that keep us entrepreneurs awake at night: predictability, stability, transparency, responsibility. Or rather their lack “, they mention.
Romanian Business Leaders emphasizes that Romania’s transition in 2004 from progressive to single quotas has been an extraordinary gain and a key element for the accelerated economic and social growth of the last 17 years.
This measure favored the massive growth of the country’s middle class, through the development of small and medium enterprises, discouraging the emigration of specialists and investments, and 150,000 jobs were brought to light and taxed, so that from about 2% contribution in Income tax GDP in 2004, reached 3.7% contribution to GDP in 2017 and 2018, with a subsequent decrease caused by the reduction of the single rate and the introduction of fiscal facilities for certain sectors, according to Agerpres.ro.
The single share also contributed to a tripling of the country’s GDP from $ 75 billion in 2004 to $ 249 billion in 2020, simplifying the tax administration system from the perspective of both taxpayers and tax authorities, reducing the costs of processing / processing tax returns and stimulating Romanian and foreign investments and Romania managed, despite many other obstacles, to remain in a competitive area in the group of emerging countries in Central and Eastern Europe.
Romanian Business Leaders (RBL) is an apolitical, non-governmental and non-profit organization that offers a platform for action and social involvement for entrepreneurs and business leaders in the private business environment.
