According to Dan Schwartz, tax consultant, co-founder and managing partner of RSM Romania, the 1% turnover tax for large companies that have an “excessively low” 16% income tax violates the provisions of the European VAT Directive.

According to him, the Directive does not allow the member countries to introduce another indirect tax on turnover with the exception of VAT.

“This is actually a sales tax that does not have a VAT regime. This will be found in the costs. The spending will have a macro-level impact on inflation and the standard of living of the population,” he said at a conference organized by the Coalition for Freedom of Trade and Communications (CLCC).

In general, says Schwartz, all increases in taxes and fees are reflected in prices.

“Those who carry out economic activities must reimburse these costs. If the market does not allow to recoup costs, given the likely slowdown in economic growth, many companies will cease operations after a significant reduction in activity,” he explained.

Other companies, the tax consultant believes, will move from the white zone of business to the gray or black zone of the economy.

“The fight against tax evasion, in the understanding of the government at the moment, means: taking taxes from those who pay. Let’s not take taxes and fees from those who do not pay in one way or another,” explained Dan Schwartz.

Other statements:

• “Checks have already started on the market specifically for taxpayers who pay the largest amounts in the form of income tax, VAT and social contributions and payroll tax.”
• “The minimum tax is anti-economic. This tax is in the Fiscal Code, but it applies to casinos, nightclubs and some gambling operators. “
• “If the Romanian government sees the whole economy of Romania as a big casino, I think it has a somewhat distorted view of the economic realities in our country”
• “The regulatory act was written in a chaotic manner. He moves from one area of ​​interests to another, there is no rigor in terms of writing.”

According to the project adopted by the Çolaku government, large companies (with a turnover of more than 50 million euros) will pay a tax of 1% of the turnover if the profit (16%) is lower.

In practice, a formula is introduced from which various things are deducted, such as investments or excise taxes.

Exempted are companies that exclusively engage in distribution/supply/transportation of electricity and natural gas and are regulated/licensed by the National Energy Regulatory Authority.

See what awaits you. Read: What taxes the PSD-PNL coalition adds and increases / Everything you need to know

Photo source: Dreamstime.com