Teachers, analysts, Romanian and foreign entrepreneurs and investors want the new Tax Code applying as adopted by Parliament

Several teachers, economists, Romanian and foreign entrepreneurs and investors are not in the assent of president Klaus Iohannis, who has rejected last Friday the new Tax Code and has returned the draft law to Parliament for reconsideration.

They sent a letter to the head of state, to Senate President Calin Popescu Tariceanu and to the leaders of all political parties, according to which “the political opportunity of the tax burden decrease generated with the drafting of the law on the Tax Code is a chance not to be missed.”

The signatories believe that prosperity can not be built on budget deficits and public debt, rolled away annually and that the monetary and fiscal policies can not offset the absence of real reforms so that a new approach is needed, based on accountability and sound principles.

However, they mention that they note “with concern” that the Government’s appetite for populist measures has increased lately and they are disappointed that the rest of the political class “is mimicking”, in the best case, a unconvincing protest against the granting of allowances, subsidies and other gifts without offering alternatives.

In its turn, the Foreign Investors Council (FIC) supports the new Tax Code in the version approved by the Parliament also, but considers necessary to keep the budgetary discipline to not appear macroeconomic slippages.

“The new Tax Code draft is the result of a sustained effort of the business environment in Romania carried out over the last two years together with the authorities. We believe that the text adopted by the Parliament last month is a substantial improvement of tax legislation in Romania, bringing more clarity and predictability of fiscal policy in the medium and long term,” a press release shows.

The foreign investors also welcome the initiative of reducing tax burden in Romania, which can help to boost Romania’s competitiveness in the region.

In this context, FIC considers necessary to preserve fiscal discipline to not require then further fiscal adjustments.

Not least, Spirits Romania Association – manufacturers and importers of spirits – says the new Fiscal Code has the potential to reduce tax evasion of more than 75 percent of the spirits industry without state collected revenues to decline. “Cutting excise duty on spirits is vital for our sector, which since 2013, when the excise duty on alcohol increased by 42 percent, is facing significant losses caused by an unprecedented increase on the black market,” a press release of the Association informs.

analystsbudget deficitsdraft laweconomistsexcise dutyForeign Investors Council (FIC)macroeconomic slippagesmonetary and fiscal policiesparliamentpublic debtreformssignatoriesSpirits Romania Associationstate collected revenuestax burdenTax Codetax evasionteachers
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