The imposition of a set of fiscal measures of the scope circulated in public, on a short notice and in the middle of the tax year, risks triggering new economic imbalances, representatives of Romania’s Business People Association (AOAR) argue, write Agerpres.

„Amid the announcement of a new tax package, the Coalition for Romania’s Development recommends as main sources for narrowing the excessive budget deficit the cut of budgetary expenses and increasing the collection of tax revenues. (…) The fiscal adjustment measures by the control of expenditures, no matter how unpopular, must be implemented with priority and expeditiously. The Romanian state is compelled to limit squandering and to prove responsibility in the management of public money,” the statement said.

AOAR representatives say that the restructuring of state-owned companies, which continue to pile up losses and debts, the professionalization and digitisation of the administrative apparatus, and the prompt revision of the wage law are measures that can reduce expenses and, consequently, can contribute to balancing the budget.

Also, AOAR argues that Romania can no longer postpone closing the huge gap in tax collection. Romania remains the country with the widest VAT gap in Europe – 35%, and each VAT percentage point means 1.4 billion RON that fail to reach the state budget.

Another top requirement is the significant and urgent increase of the administrative capacity through the use of competent personnel or the contracting of technical assistance offered by specialized service providers.

AOAR points out that the regime of sponsorship and/or patronship contribution should not be modified, as this would disrupt a mechanism that has already proved its usefulness in society.

The business people’s representatives express their openness and availability to dialogue for jointly setting in place a sustainable, clear, digital and predictable fiscal system.