AcasăEurope NewsPM Bolojan and automotive industry representatives discuss minimum turnover tax and cogeneration...

PM Bolojan and automotive industry representatives discuss minimum turnover tax and cogeneration levy

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Prime Minister Ilie Bolojan held talks on Monday at the Victoria Palace of Government with representatives of the Romanian Automobile Manufacturers Association (ACAROM).

According to a Government press release, representatives of the automotive industry presented the prime minister with a series of economic and social challenges facing the sector, particularly regarding the minimum turnover tax, electricity costs, the car scrapping Rabla programme, energy price caps, the cogeneration levy, employee pay and the application of the Labour Code.

„One of the industry’s main requests concerned the elimination, starting in 2026, of the minimum turnover tax, which is considered discriminatory, as well as the drafting of next year’s budget without including this tax. The prime minister expressed his willingness to consider a reduction in this tax under certain conditions, stressing, however, that such a measure cannot apply exclusively to the automotive industry but must target the economy as a whole,” reads the press release.

Another important topic discussed was the cost of electricity.

„In this context, ACAROM [the Romanian Automobile Manufacturers Association] representatives called for the development of a roadmap to reduce energy costs over the 2026-2030 period. The prime minister explained that lower electricity prices will become possible as national production capacities increase,” the source added.

Regarding the increase in the cogeneration levy flagged by the automotive industry, the prime minister said he would request checks to clarify the circumstances in which the levy was raised, the statement further noted.

Another issue addressed concerned the Car Scrapping Rabla programme.

„Representatives of the automotive industry called for the resumption of the Rabla programme, citing losses recorded this year as a result of restrictions to the government scheme. They pointed out that the reduction in the number of vehicles financed through the programme, from 30,000 in 2024 to 19,000 in 2025, could generate the risk of losing around 5,000 jobs in the industry. The prime minister explained that the Rabla programme will continue, but at a significantly lower intensity, and that state funding will be correlated with the level of national production. He specified that the scaling back of the programme is due both to Romania having met the indicators assumed under the National Recovery and Resilience Plan (PNRR) and to budgetary constraints. Decisions on this scheme will be taken after the adoption of the 2026 budget and, prior to implementation, will be discussed with partners in the automotive industry,” the press release further mentions.

Other issues raised included tax exemptions for research activities in the automotive industry, amendments to the Labour Code, support for technological automation in large enterprises, backing retraining programmes for employees and the minimum wage.

Attending the meeting at the Victoria Palace on behalf of ACAROM were Automobile Dacia CEO Mihai Bordeanu, Ford Otosan Craiova CEO Firat Elhuseyni, Industrial Components Group (GIC) Pitesti CEO Silviu Badea, Renault Group Romania public affairs director Cristian Nevzoreanu, Ford Otosan Craiova government affairs director Andreea Radu, Bosch Romania administrator and legal director Alice Radu, Schaeffler Romania and South-East Europe CEO Alexandru Blemovici, Rombat SA deputy CEO Costel Trinca, and ACAROM secretary general Adrian Sandu.

From the Government side, the meeting was also attended by the Head of the Prime Minister’s Chancellery, Mihai Jurca, and State Counsellor Raul-Mircea Gutin. AGERPRES

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