Gov't backs down on the fiscal changes
The fiscal changes recently announced in the new government’s program, such as replacing the profit tax with the tax on turnover and introducing a solidarity tax on high wages, have been strongly criticized by business organizations representing both foreign and local investors.
Legal and taxation advisors from Ernst&Young, the Coalition for the Development of Romania, the Businessmen’s Association of Romania, the National Council of SMEs, and the Chamber of Commerce and Industry of Romania voiced their concerns on the proposed changes in taxation. Even the US Ambassador to Romania Hans Klemm said that the economic side of the strategic partnership between the US and Romania might potentially be affected by fiscal changes if these are to be made without consulting investors.
The income tax elicited most reactions after PSD leader Liviu Dragnea said the Government was considering introducing this tax in order to collect more money from foreign-owned companies, which have been posting lower profits than local entities.
After strong critics in the last days, the ruling coalition PSD-ALDE decided to summon an extraordinary meeting on Monday, July 10th...