The new
\nprogramme of the ruling coalition formed by the Social Democratic Party and the
\nAlliance of Liberals and Democrats provides that Romanian businesses are to pay
\ntheir taxes based on their turnover rather than their profit. This measure is
\nexpected to come into force on 1st of January 2018. Big companies
\nwill no longer pay a 16% flat tax, as is currently the case, but a 1, 2 or 3%
\nincome tax. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
The governor of
\nthe National Bank Migur Isarescu said the institution he runs would analyse the
\nmeasure carefully when the final decision is taken. He emphasised that the
\nproposal to introduce a tax on turnover rather than on profit did not come from
\nany Central Bank expert:<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
Turnover tax
\nexists in many countries. I’m not saying it’s good thing or a bad thing. The
\nideas attributed to the Central Bank can be found in any economic policy
\ntextbook, so they don’t necessarily have to come from someone working for the
\nNational Bank. What’s important is who embraces theses ideas, in what form and
\nhow they put them into practice.<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
Prime minister
\nMihai Tudose is reportedly in favour of turnover tax, provided it is levied
\ngradually and only on certain types of businesses, government sources have
\nsaid. The same sources say the prime minister is waiting for the result of the
\nsimulations conducted by the finance ministry before making a decision.
\nExperts, however, say the measure would be disastrous for the business
\nenvironment and generate a wave of negative consequences. Moreover, they warn
\nthat the application of differentiated turnover tax may lead to competitive
\ndiscrepancies between countries that will affect the cost of end products, with
\nRomania thus risking the activation of an infringement procedure against it. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
According to an
\nanalysis carried out by the Association of Financial and Banking Analysts in
\nRomania, the effects of a possible turnover tax will be a heavy burden for most
\nbusinesses in Romania, particularly those with incomes in excess of 1 million
\neuros, 60% of which are with foreign capital. According to this report, sectors
\nsuch as distribution and retail sales, which traditionally see high turnover
\nbut low profit margins, will be most affected by the new measures. This is the
\nfirst impact study of the new tax measures, considering that neither the
\ngovernment nor the authors of the governing programme of the ruling coalition
\nhave produced a document of this type so far. <\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Romanian businesses to pay higher taxes as of 2018 if the government introduces tax on income rather than profit.<\/p>\n","protected":false},"author":106,"featured_media":66333,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[39002],"coauthors":[],"class_list":["post-73194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-turnover-tax"],"acf":[],"yoast_head":"\n