Business environment representatives call on the Gov’t not to adopt the fiscal decisions announced by Fin Min Teodorovici

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The Coalition for Romania’s Development (CDR), representative for the business environment, has issued a communique warning that the avalanche of the fiscal-budgetary decisions announced Tuesday evening will have significant impact on the entire economy, it is unacceptable and is the symbol of the fracture between the governance and the companies.

CDR includes 25 organisations, with more than one million employees, generating about 50% of the GDP.

“The rumours in the past week were confirmed by the Finance Minister. (…) The business environment was presented 57 pages of substantial amendments, having only one day to read them. We remind that in 2018 the Tax Code has registered more than 200 amendments,” the release reads.

Main ideas:

  • It is the climax of a policy made through emergency ordinances, without consulting those who will be affected;
  • The business environment was waiting for Parliament to adopt a series of amendments to the Tax Code, discussed for over six months. Instead, the Government has announced an emergency ordinance bringing fundamental amendments to many sectors, about which the Finance Ministry said nothing during our meetings this year;
  • The GEO does not meet the minimum constitutional conditions;
  • The proposals have not been tested on SMEs and haven’t been sent to the Economic and Social Council 48 hours before;
  • We cannot abstain from asking ourselves how much does the Government care about the opinion of social partners with the trade unions, employers’ associations and civil society;
  • The amendments target key infrastructure sectors such as the banking sector, telecommunications and energy sector. The decisions are to be implemented without any impact study and most of them will lead to price hikes for consumers. Some of them lack logic, as the proposal to tax the banks depending on the ROBOR Index level, which is a market indicator and not one set up on anti-competition decisions. Others lack vision, as are the amendments to Pillar Pension II, risking to destroy the entire savings system, shortly after the Government has announced the increase of public pensions, which will lay pressure on the public budget in the coming years;
  • CDR has warned for years that the budget expenses’ dynamics will not allow a deficit of 3% without the introduction of new taxes, the anticipations are now met;
  • Instead of destabilizing the economy with decisions made overnight, we support the Government to collect the taxes and thus balance the budget;
  • CDR calls on the Government not to adopt the emergency ordinance and to allow more space for public debates.

 

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