AmCham Romania expresses concern over fiscal measures announced by Government

  The American Chamber of Commerce in Romania (AmCham Romania) expresses its concern over the fiscal measures announced by the Government, but also about the immediate deadline for their implementation, January 1, 2025, which puts the business environment in a difficult situation and further affects economic predictability and investor confidence."Over the past five years, AmCham has systematically signaled the depreciation of macroeconomic indicators, the associated risks, and the need for substantive measures to restore fiscal balance and support economic growth. Unfortunately, the signals from the business community were not followed by adequate action, which contributed to the deepening of fiscal imbalances. Reality and experience show that sustainable solutions must come from a transparent process of consultation with all stakeholders and a firm commitment to structural reforms that support economic growth and attract investment. In addition, in the last period, we observe the overlapping of the signs of a global economic crisis with the atypical domestic situation, factors that amplify the degree of uncertainty felt by Romanian companies, regardless of their industry, size or origin," reads an AmCham Romania press release.The members of AmCham Romania admit that the need for corrective measures is well known, but they warn that the manner of adoption of the recent fiscal measures - on short notice, without consultation and without rigorous impact analysis - creates a climate of economic uncertainty and risks to discourage the essential investments for a sustainable economic growth."In addition, we note with concern that, in terms of public expenditure, measures to limit the growth of public spending are being predominantly adopted, without including substantive initiatives to streamline spending and implement essential administrative reforms. Without a concerted effort to optimize expenditures and modernize the administration, Romania cannot overcome the budget impasse in which it finds itself. AmCham Romania reiterates the importance of transparent dialogue and predictability in the decision-making process, as prerequisites for strengthening business confidence, attracting long-term investment and identifying the best solutions," reads the press release.The Ministry of Finance published on Sunday the draft Emergency Ordinance on some fiscal-budgetary measures in the field of public expenditure for the general consolidated budget for 2025, which proposes, among other things, the elimination of tax facilities granted to individuals who earn income from salaries and income assimilated to salaries, from software development activities or from employers in the construction, agricultural and food industry sectors under the conditions established by the Fiscal Code, starting with the revenues for January 2025.The draft also proposes an increase from 8% to 10% of the tax rate on dividends distributed as of January 1, 2025 and a reduction of the income ceiling realized by a Romanian legal entity, from 500,000 EUR to 250,000 EUR, including during the tax year, and to 100,000 EUR as of January 1, 2026.The American Chamber of Commerce in Romania - AmCham Romania is the most representative business association, recognized for facilitating a consistent public-private dialogue on the economic agenda and for its contribution to the strengthening of economic relations between Romania and the United States.