AmCham collected input from members and contributed to the elaboration of this paper that has been distributed on behalf of business associations under Coaliția pentru Dezvoltarea României (CDR). The document has been widely circulated to all relevant authorities – Prime –Minister, Ministry of Finance, Parliament, political parties and also shared with the media.
The CDR Letter on the Impact of EO 114/108 can be accessed on the CDR webpage here.
Ionuț Sas, Tax Partner with PwC Romania, member of the AmCham Romania Board of Directors, chairing both the AmCham and CDR Taxation working groups sums up below the context and objectives of this initiative.
The lack of consultations and predictability on EO 114 surged an immediate wave of negative reactions in the market, mostly visible in the dynamics of the stock exchange indices, exchange rates, investments, which have either lowered or have been put on hold.
Measures that structurally affect key industries in an economy, such as banking, energy, constructions, telecommunication must always be preceded by a comprehensive, true to reality impact study, in a close collaboration with all the relevant stakeholders.
Romania’s ambition to become an emergent capital market has been severely hit by affecting the role and importance of private pensions pillar II players.
Last but not least, this EO 114 has been passed despite containing major unclear aspects (how is it to be applied in constructions, tax on banking assets), as well as provisions raising serious concerns about their infringement potential (see the ANCOM tax).
This position paper developed at the CDR level aims to draw attention on such aspects, to call for a real and constructive dialogue with the authorities, and to request the withdrawal of some of the EO 114 provisions that we believe to undermine a sustainable development for Romania and Romanians.
As AmCham continues to focus on this topic as well as on looming similar measures, through the relevant committees, we continue to rely on your feedback and insights, critical in substantiating our positions!