AmCham Romania: Stop the assault on the economy!

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The American Chamber of Commerce in Romania (AmCham Romania) calls for the immediate withdrawal of the draft Government Ordinance on new fiscal measures announced by the Minister of Finance on December 18 and aimed for implementation starting with January 1st, 2019, a release posted on Wednesday its website reads.

We consider that the proposed measures as well as their adoption manner to be irresponsible and reckless, throwing the market into a complete chaos, as confirmed by the first responses on the capital markets which indicate a steep erosion of investors’ confidence within hours from the announcement. 

We reiterate the call for observing the legal framework regarding transparency in decision-making and public consultations, the release concludes.

Earlier on Wednesday 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.

Finance Minister Eugent Teodorovici announced on Tuesday that banks will be differently taxed, according to ROBOR (Romanian Interbank Offer Rate). The higher the index is, the higher taxes will be, says the new tax, called “the tax on greed”.

The FinMin announced this measure among other several fiscal measures envisaged for 2019, such as the EUR 10 billion investment fund, the decrease of taxes in constructions, but also the controversial decision to take the “vice tax”, which encompasses money normally intended for the investments in hospitals and to the big healthcare programmes to counter chronic diseases, and redirect it to the state budget to cover for the state employees’ salaries and for other expenses in the central administration.

He also announced the capping of the gas price for a three-year period: RON 68 megawatt/hour. The measure will apply until February 28, 2022.

In the case of Pension Pillar II: Funds can invest in public-private partnerships; administration fee drops from 2.5% to 1%; the second commission of 0.05% of the assets changes according to the fund’s performance; a person may withdraw the money, but not earlier than 5 years, and the withdrawal fee is 2% of the assets.

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