Barometer: Most entrepreneurs expect income taxes to grow in next 12 months

About 70% of entrepreneurs expect income tax on salaries to grow in next 12 months and two thirds of them estimate an increase on the tax on profit, according to data of the Barometer of New Money Entrepreneurs INSCOP, presented on Tuesday at a press conference.   “Entrepreneurs are connected to debates in Romanian society about the sustainability of deficits, expectations at the end of election cycles. We always find these types of perceptions in election years. We have 70% of entrepreneurs who say they expect income tax on salaries to grow either a lot, or a little in the next 12 months. As for the tax on profit, two thirds of entrepreneurs (66%) think that tax on profit will grow even more, a high number of people who think it will grow a lot (25%). Referring to the tax on dividends , we have the same picture. About 70% of respondents consider that, in the next 12 months, these texes will grow. As for VAT, we see a lower level. Most people think that VAT will not be changed, but we have a third who consider it will grow a little. When we think about VAT, we speak about a tax applied to the whole population, and then, expectations about the fiscal pressure are more moderate. Entrepreneurs consider that such a tax will have lower chances to be applied, in conditions in which the whole population is affected. However, about 50% of entrepreneurs consider that VAT could grow in the next 12 months,” said Remus Ioan Stefureac, the president of INSCOP Romania on Tuesday.   As for the interest rate for credits, te president of INSCOP said that 11% of entrepreneurs consider that it will grow a lot, 34% that it will grow slightly, 18% of businessmen think it will remain the same, 20% that it will drop a little, while 15% that it will drop a lot. So, about 45% of entrepreneurs consider that in the next 12 months the interest rate for credits will grow. 50% of entrepreneurs cosndier that the leu-euro exchange rate will grow slightly, 5% that it will grow a lot, while 35% that it will remain the same.   Data of the barometer made in Romania were collected ovwe August 13-25, on a sample of 1,450 entrepreneurs, representative for entrepreneurs in Romania.   “The first question we asked was : In what direction will things go in Romania? 28-29% of entrepreneurs consider that things are going to the good direction, while 66-67% consider they will go to the wrong direction. Figures resemble the way people evaluate the direction in which the country is going,” Stefureac said.   As for the perception about the situation of economy, 28.9% of entrepreneurs think Romania is going to the right direction, wile 66.8% are pessimistic about the future of the country. About 4.3% represent the share of non-answers.   Asked about how they consider Romania's economic situation versus a year before, 1% of participants in the poll consider the situation was much better, 12.7% that it is better, while 15.8% that the situation is the same. About 44.7% consider that the situation of the national economy is worst than a year ago, while 24% that it it much worse. About 1.7% of participants in the poll do not know or cannot say, while 0.1% will not answer this question.   As for the evolution of Romania's economy in the next 12 months, 0.8% of entrepreneurs interviewed think the econimic situation in the next 12 months will be better, 13.4% that it will be better and 21.1% that it will be the same. On the other hand, 35.3% of participants in the poll consider that the situation will be worse, while 26.1% that the situation will be much worse. About 3.2% say they do not know or cannot say.   Referring to the financial situation of the company compared to that of a yearago, 3.2% of entrepreneurs interviewed consider the financial situation of their company is much better than a year ago, 25.3% that it is better, wile 33.9% that it is the same.   About 27.6% say the financial situation of their company is worse, while 7% that it is much worse.   As for the financial situation of their company in the next 12 months, 6.3% of people interviewed estimate that it will be much better, 32.3% that it is better, wile 37.3% that it is the same. About 16.3% expect that the financial situation of their company in the next 12 months will be worse, while 5.1% that it will be worse.   At the same time, 24.4% of entrepreneurs interviewed estimate they will hire personnel in the next 12 months, while 62.6% say they will keep the same number of employees. Only 11.1% estimate they will have to fire staff in the next 12 months. More than half (55.4%) of entrepreneurs interviewed declare that, in the next 12 months their company invested resources in the development/expansion of activities, while 44.4% say they did not make such investments.   On the other hand, about 29.7% of entrepreneurs interviewed consider that the number of controls made by state authorities (ANAF, ANPC, Environment Guard) will grow a lot in the next 12 months. 28.9% that they will grow a little, while 35.2% think it will be the same. About 2.3% think their number will drop a little, while 1.7% that it will drop a lot.   The Barometer of New Money Entrepreneurs INSCOP, the most ample evaluation of entrepreneurs' opinions in Romania, was launched at the conference “Barometer of entrepreneurs who are building the future – Romania and Moldova”. The Barometer will be organized twice a year and presents entrepreneurs' opinions about the evolution of Romanian economy, of public services and their own businesses, the relation with EU and Moldova.   The project is made with the support of German Masall Fund, Ukraine-Moldova American Enterprise Fund, Partnerships for the New Economy, Newmoney.ro, Informat.ro and Strategic Thinking Group. (Photo:https://www.inscop.ro/)