“I reiterated very firmly that we will not introduce a tax on turnover and we will ensure fiscal predictability and we expect to stay within the 3% [of GDP budget deficit limit],” said Tudose after talks in Brussels with EC President Jean-Claude Juncker and Vice-President Frans Timmermans.
Romania’s government sowed panic in the business community announcing plans to scrap a 16% tax on companies and replace it with a 1% to 3% tax on turnover. Business owners associations criticized the plan, saying it would drive investors away, hindering economic growth, while analysts estimated such a tax would drive a third of companies in Romania to insolvency.