AmCham calls for maintaining the flat tax

Newsroom 26/10/2010 | 12:50

AmCham is asking for the flat tax to be kept, along with setting up a limit for the contributions for social security insurances. According to AmCham, an organization which represents 300 companies, says such an approach to fiscal policy is important to maintain Romania’s competitiveness in the region and to help combat the grey economy.

 

“We believe that maintaining the flat tax contributes to ensuring the stability and predictability of the business environment, so necessary in Romania, and putting a margin to social contributions will help introduce a balance between the paid contributions and the social services that the payer can benefit from. Moreover, at a social level, a progressive tax will mainly affect the middle class, an important segment of the active population which already brings a significant contribution to the state budget,” said Sorin Mandrutescu (pictured), AmCham Romanian president.

 

Looking at the fact that in 2009 the implicit VAT rate, calculated with respect to the VAT collection and private consumption, was of 10.8 percent compared with 19 percent which was the legal rate, AmCham thinks it is essential for the government to improve its revenue collection and administration efforts.

At the same time, AmCham highlights the need for changes in the fiscal policy to be targeted at modernizing the fiscal system as a whole, and ensure a stable business environment, which is favorable to maintaining investors already present in Romania.

 

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