Rumors about flat tax hike stirs avalanche of criticism among employers

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They claim bankruptcy and unemployment.

The subject on flat tax increase in the coming years, released before the latest round of presidential elections brought waves of criticism and political statements. One thing is ‘sure’- according to Senate President Calin Popescu Tariceanu, this fee will not be changed, if he will stay in books for prime minister position with Victor Ponta elected Romania’s president for the next five years. He stressed that the measure was among the firsts introduced when he became prime minister in December 2004.

“If I wanted to change the flat tax, I would have changed it in the two and a half years as Prime Minister. I will not get to change it in 2016 as President, for the simple reason that the president does not alter flat rates,” said Victor Ponta, claiming that it’s all about “misinformation”, “lies” and “manipulation”.

Increasing the flat tax would lead to the crashing of honest business operators activity in the tourism industry, Lucia Morariu, National Association of Travel Agencies in Romania president.
“In the hospitality industry, labor taxing, uncompetitive compared to Romania’s concurrent countries on tourism market, which is much larger, has led to a situation where qualified workers in tourism by local schools leave to Spain, Italy and Great Britain, and travel is the industry which has the lowest wages in the Romanian economy,” Morariu also said.
Instead, ANAf official believes that a turnover tax is very courageous approach, provided that the level of this fee to take into account the profitability rate from one sector of the economy or the other.
A possible increase of flat tax or of the progressive quota would lead to bankruptcy or to widespread tax evasion, and over 100,000 workers would become unemployed, at least tourism industry, Dragos Raducan, Vicepresident of Romanian Tourism Employers’ Federation emphasized.

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