Romanian Carmakers Require Payment Delay For 50% Of Their Due VAT

Allowing car part makers in difficulty to pay half of their due VAT later is a measure that would help the industry, but a decision will be made after an exact assessment of budget revenues, Romanian Prime Minister Emil Boc said Thursday.

"This proposal is being analyzed but a decision can be made only after an exact analysis regarding state budget revenues. I agree than, in principle, it is a measure that would help the auto industry. I am also aware that the state budget needs revenues to be able to make the payments it has to make every month," Boc said during the conference Mediafax Talks about Auto Industry.

The Association of Romanian Carmakers (ACAROM) asked the government to grant carmakers a delay for the payment of 50% of the value added tax not only for this year, but also for the next.

"For instance, we want to pay half the VAT for March 2009 in March 2011 and we've asked the government for a delay in the payment of 50% of the VAT for 2010 as well. We require VAT payment delays for 2009 and 2010 because we don't know how long the crisis will last," association president Constantin Stroe said Thursday during the conference Mediafax Talks about Auto Industry.

He said a payment delay would help car part makers, who have serious trouble getting financing.

"Without them, there would be no car. (...) Instead of having hundreds of companies taking loans, the government should postpone the VAT payment. We're not asking for an exemption, we jut want to pay later (...). If the finance minister analyzes this proposal thoroughly, he will reach the conclusion that applying this proposal is a win-win situation," Stroe said.

He added the carmakers' association also requested support for small and medium-sized car part makers, to ease their access to loans and help them fund research and development activities.

"We've tried to get funds for innovation in 2007 and 2008 under the Sectorial Operating Program, but to no avail," Stroe said.

Mediafax