On November 3, members of the AmCham Romania Taxation Committee had a constructive dialogue yesterday with members of the Budget and Finance Committee in the Romanian Parliament.

The discussions focused on forms of distortionary taxation such as the minimum turnover tax, the tax on special constructions, and the limitation of intra-group expense deductibility.

Outlining AmCham’s vision, President Vlad Boeriu pointed to the stringent need for reducing public spending to achieve the budgetary sustainability Romania committed to:

“We have regarded the recent tax increases as a necessary measure to navigate a sensitive period marked by the risks of a credit rating downgrade and the potential suspension of EU funds. However, in our assessment, Romania’s chances of meeting the seven-year fiscal consolidation plan agreed with the European Commission remain limited unless public expenditure is reduced and tax revenue collection is improved. Fiscal adjustment represents a strategic priority for the coming years, yet it is equally important to avoid triggering a recessionary cycle. Achieving this balance requires predictable and well-calibrated fiscal policies that support and incentivize private investment, rather than constrain it.”

Representatives of member companies in impacted industries shared the negative effects on their operations and how this type of taxation reduces Romania’s economic competitiveness and growth capacity.

AmCham emphasized that the direct impact - postponing or halting investments, as well as the second-round effects of these measures (such as avoiding new hires or reducing activity), will negatively impact the state budget.

The meeting concluded with an agreement to continue the dialogue with decision-makers in the Parliament, aiming to identify the best approach and solutions to support Romania’s sustainable development while ensuring a return to the fiscal adjustment path outlined in the Medium-Term National Structural Budgetary Plan 2025–2031.