The income tax, proposed by the government as part of the fiscal adjustment package, is, in fact, an "investment tax," the association of investors AmCham claims in a statement.

For companies, such a tax is an investment tax, not a turnover tax, as it will be covered by cutting investments, the association explains.

Furthermore, beyond the impact on each business, the new tax will reduce Romania's potential to attract significant new investments with high-added value, AmCham further argues. It will thus affect Romania's plan and opportunity to become a regional hub for companies interested in participating in the reconstruction of Ukraine.

AmCham criticised the government's plans for a variety of reasons, including but not limited to: preventing the development of to-be Romanian unicorns (companies), being paid by good taxpayers (valid for all taxes in general), increasing excessively the overall taxation rate, fueling inflation (as it will be paid by final consumers, eventually), deepening the already wide trade gap, and being a fix for the weak tax collection rate.

iulian@romania-insider.com

(Photo source: Facebook/AmCham Romania)