“From the point of view of the business environment, the new Tax Code and the Fiscal Procedure Code is a big progress. We hope we will witness a refreshing of the business environment after the tax cuts,” Pogonaru stated.
Nevertheless, Pogonaru said that some of the AOAR proposals were not taken into account, such as fiscal consolidation for Romanian groups, that would support Romanian capital stay in the country and bring investments to the country.
Florin Pogonaru added that the Romanian business environment needs more local entrepreneurs, but they lack support.
AOAR head added that, in his opinion, foreign investments to Romania will no longer benefit from the support of the population, as Romanians’ living standard has not improved despite economic growth.
The Romanian Chamber of Deputies on Wednesday approved the Tax Code and the Fiscal Procedure Code, with 306 pros, two cons and one abstention.
One of the main measures in the Tax Code is the reduction of the value added tax rate from the current 24% to 19% as of January 1, 2016.
Beside the VAT rate reduction, the new Tax Code eliminates the special constructions tax, introduced just two years ago, and cuts the dividend tax to 5%. The law also sets forth the plan for reduced social insurance tax rates and a flat rate tax cut starting with 2018.