Speaking at a press conference, Grapini said companies will pay less than they would pay by applying the 16% tax on profit or the 3% tax on revenue.

She also said for each CAEN (Classification of Activities in the National Economy) code, there have been identified the relevant indicators which would allow an economic operator to obtain a certain revenue. The minister referred to hotels in seaside and mountains resorts, for which seasonality is considered when calculating taxes.

Grapini said tax evasion reaches high levels in the sector of services provided to people, arguing the taxes cashed in 2011 from all hotels and boarding houses in Romania were lower than taxes paid by auto repair shops. She added that specific indicators have been set for carwash and repair shops.

The minister explained that a fixed amount would make things easier because companies would no longer pay other taxes, not even the 16% tax on profit. Therefore, she went on, a company can obtain “as much profit as possible” which it can further invest or distribute as dividends.

“We are talking about a study which should normally work if the Finance Ministry fully applies it,” said Grapini, adding employers in the targeted sectors and ministry officials will meet for talks this week with a view to finalizing the draft act.

The lump-sum tax, which Romania might introduce starting July 1, 2013, targets only some services, including bread-and-breakfast units, hotels, restaurants, beauty salons and carwashes.