The American Chamber of Commerce in Romania (AmCham Romania) voices the concern of the business community that it represents regarding the intention of the governing coalition to increase the tax burden for large companies in Romania, at a time when the investment and business climate is already challenged by multiple crises.
After a period of prolonged political crisis during which the confidence of companies in the Romanian investment environment collapsed, overlapping with a peak period of the Covid crisis, rising energy prices, increasing tensions in the labor market, news about additional taxes only increases the risks of reorienting investment and expansion plans.
The lack of predictability and the deepening of instability through sudden measures discourages companies’ investment plans and intentions for the Romanian market, the mid and long-term negative impact exceeding the short-term gain.
The business community does not question the need for funding from the state budget for critical systems or vulnerable groups, but the intended manner of adopting unsubstantiated fiscal measures overnight, instead of integrating any such measures into a mid to long term strategy that always seeks the benefit of the economy at large.
The import of measures applied in other countries here and there does not guarantee their applicability and adequacy for the Romanian economy.
The practice of transferring budgetary pressure to the private sector overnight, without notice, without prior consultation, without a roadmap, without a real impact study, without an analysis of its compatibility with European legislation has always proved to be counterproductive. As has been the case in the past, overnight measures have led to losses to the state budget in the medium term, contrary to calculations on paper that showed increases in revenue.
Increasing budget expenditures without reforms of the public administration, streamlining the tax system through digitization and professionalization, increasing the collection of budget revenues, is not a proof of responsibility for society, but only a transfer of burden to the private sector, which creates value in the economy.
AmCham Romania calls for the abandonment of this measure and for the orientation of the government's agenda towards sustainable, responsible policies, which should contribute to the consolidation of the investment rating and to attracting new investments.
AmCham Romania reiterates the need for an honest and constructive dialogue and partnership between the public and private sectors and expresses its willingness and commitment to participate in real transparent and substantial consultations on Romania's fiscal policy.