The American Chamber of Commerce in Romania (AmCham Romania), which represents 300 member companies, has called for maintaining the flat tax in Romania, along with capping social insurance contributions. These should become the central element for the country’s regional competitiveness, especially as Romania competes with countries having more favorable, stable and predictable fiscal regimes.

„We believe that maintaining the flat tax will contribute to ensuring stability and predictability for the business environment, so much needed in Romania, while the capping of the social insurance contributions will balance the paid contributions and the social services that the contributor can benefit of. Moreover, on a social scale, a progressive income tax will mainly affect the middle class, an important segment of the active population already having a significant contribution to the state budget”, said Sorin Mîndruţescu, AmCham Romania President (in picture).

Such an approach of the fiscal policy is a prerequisite for maintaining Romania’s competitiveness in the region and for taxing the gray economy.

Since in 2009 the implied VAT rate, calculated as ratio between collected VAT incomes and private consumption was 10.8% compared with 19%, the legal rate, in AmCham’s opinion it is essential for authorities to channel their efforts towards increasing the budget revenues primarily by improving the capacity to collect and manage budgetary revenues.

editor@romania-insider.com