In his opinion, the legislative changes announced about the social security and health insurance tax cap being dropped and the new provisions about income tax exemption for programmers have a direct impact on the industry.
“These tax changes, had they been carefully considered beforehand would not have been a problem, but they had not. They are a form of social Robin Hood, taking from the rich and giving to the poor.”
This policy is fundamentally wrong, because people in the IT sector, who have very high above average salaries, are paid like this because they are worth it, no one pays like that for no reason in the private sector, he added.
The changes are intended to boost budget revenue, which the government needs because of the social policies promoted, but they are having a negative impact on a flagship industry in Romania. Bogdan Putinica says they actually cause unpleasant discussions with the best and brightest in each company.
“Such ‘pulling the rug from under one’s feet’ kind of actions in the first quarter of the year do not sit well with the boards of international companies and upset five to ten year development plans.”
To avoid such delicate situations, the government should announce fiscal policies in good time, Putinica said.
Swedish-held software and services company Enea, which is currently employing 300 in its Romanian division, intends to add another center to those in Bucharest, Iasi and Craiova in 2017. It would also like to complete an acquisition in this country, senior VP Bogdan Putinica said.
Enea entered Romania in 2008 when it bought IP Devel, a company Bogdan Putinica founded in 2000.
“We want to open another center in Romania or a neighboring country. The market is extremely crowded, talent is unavailable. Lots of companies are opening big sites here, hiring hundreds of people and there aren’t enough resources. Under the circumstances, we are developing regionally, we have acquisition targets, we want to make an acquisition even in Romania, which I hope we’ll able to complete this year.”
(English version by Loredana Fratila-Cristescu)