Finance minister makes MAJOR announcement for companies who want to import workforce to Romania

Ioana Erdei 11/06/2018 | 14:13

Eugen Teodorovici, the Finance minister, announced that by the end of July changes will be made to the law regarding foreign workers coming to Romania. He stated that the law that forces companies to a minimum pay equivalent to medium salary to workers brought from outside the country will be eliminated.

”The economic environment is different now compared to 2010, when the law was introduced and the Government was trying to give the local workforce an advantage, but today we need foreign workers and it should be the market that establishes the salary,” says Finance minister Eugen Teodorovici.

According to the new law, workers coming from outside the country should have a minimum payment equivalent to the minimum wage required for domestic employees. ”We need this change today in order to help businesses find workforce from outside the country as well,” said Teodorovici, who mentioned that there is a need of about one million people in different industries.

Also, by the end of the year all the changes needed for the fiscal Code will be made so that starting 2019 there will be no further modifications.

Present at the launch of a new investment at British American Tobacco factory in Ploiesti, with a value of EUR 800 million that will start the production of the “next generation tobacco products”, of which 85 percent will be exported, Eugen Teodorovici also said that, by the end of the year, all customs points with Ukraine, with the Republic of Moldova and with Serbia will be sealed in order to fight illegal border traffic of cigarettes and other products. Everything that comes into the country and by any way of transportation will be scanned for illegal products.

“After sealing the borders there will be about one billion euro more in the state budget,” says Teodorovici. Out of the total consumption of tobacco around 16 percent is illegal, causing billions of euros of tax evasion.

Partners with the state

”The fact that BAT is paying a lot of money in taxes is not a favor, it’s just the legal way of doing business. We are partners (the state and the companies) in this business world and we will make sure that there is a good way of doing business, good business. You are not paying more than what you have to pay according to the law,” says Teodorovici, noting that banks, for example, are not really partners with the state because the conditions imposed for loans are too restrictive.

Regarding the issue of government securities for the population, named “Centenar”, the minister said that it will be announced this week, with a total value of RON 4 billion and an interest rate of 4.5 percent. “The idea is that it is not normal to sell government securities to the banks at a certain interest rate and the banks are offering bank deposit with a much lower interest rates. Individuals should be able to get that advantage from the government securities, especially with the fact that the earnings are not taxed for this instruments,” says Teodorovici.

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