Businesspeople's 10 suggestions for Fiscal Code

Maintaining the flat tax, reducing taxation, simplifying procedures regarding the payment of the value added tax (VAT), giving the possibility of choosing the fiscal exercise in accordance with the accounting one, which may not coincide with the calendar year, reducing and introducing social contributions in the Fiscal Code, as well as adopting the legislation for holdings, are just some of the proposals that several organizations of businesspeople made to the Ministry of Public Finance (MFP).

"Our recommendations are not radical, but in the context of the current revenue collection deficit, we thought which would be the measures that could help improve the degree of collection," the Executive Director of the American Chamber of Commerce in Romania - AmCham, Anca Harasim, told Business Standard yesterday. "Creating a ceiling for social contributions at RON 6,000 [some €1,422] would bring more money to the state budget and would eliminate a significant percentage of the black labor market," the lawyer specializing in taxation, Gabriel Biris, told Business Standard. Moreover, he added that possible measures for simplifying the process of paying VAT would eliminate the blockages created by the state in the economy by delays in payment of VAT reimbursements. The business associations gathering some 1,300 companies, came up with a set of 10 measures to improve Romania's fiscal policy. Most of them were also suggested by leading businesspeople during a debate of Business Standard's "Private Government" project on fiscal issues. For several months now, businesspeople are asking for lower taxes and an easier system for VAT payment, VAT reimbursement in due time and legislation for holdings.

Among the first and the top demands of businesspeople are maintaining the current 16 percent flat tax and cutting useless taxes and para-fiscal taxes. In this field, employers say things slightly improved compared to last year.

The suggestions for Fiscal Code changes were made by experts within the Romanian Businesspeople Association (AOAR), AmCham, British Romanian Chamber of Commerce (BRCC), Romanian-German Chamber of Commerce and Industry (AHK), Foreign Investors Council (FIC), and Netherlands - Romanian Chamber of Commerce, Industry and Agriculture (NRCC).

The suggestions were handed to Finance Ministry State Secretary Gratiela Iordache more than one week ago, but businesspeople say thy had no feedback. Furthermore, they said, the Government discussed some changes to the Fiscal Code, but did not discussed them previously with the business environment. AOAR Secretary General Cristian Parvan said that the dialogue with the Finance Ministry is deficient. "Even when we had talks with them, our opinions were not considered. They probably think that, since this was the first reading, parties did not agree, there will be further changes, so they cannot make public the project." However, Finance Ministry representatives told Business Standard that the set of measures will be analyzed and that further talks with business representatives will be held.

Improving taxation Private Government proposals

• Cut taxes and create the single tax office
• Create a ceiling for the calculation base of social contributions
• Return to a level of social contributions similar to other countries in the region
• Simplified VAT measures on real estate transactions and imports
• Reimburse VAT within the deadline indicated by law
• Stop budgetary waste, improve revenue collection
• Tougher sanctions for tax evasion
• Multiannual budget programming, on 3-5 years
• New legislation for holdings, with a tax deduction system
• Create fiscal courts of law

Business Standard