The additional tax on credit institutions has caused a number of fears and speculations about its impact on the banking sector and the economy as a whole. The measure, which calls for a quota of 2% of turnover for 2024 and 2025, followed by a quota of 1% of turnover starting in 2026, has raised concerns among banks, their employees and foreign investors.

An important point is how this surcharge will affect small banks that have little ability to manage costs. These institutions are likely to be more affected by the additional 2% sales tax. In an effort to offset these additional costs, banks may have to cut labor costs, which could lead to wage freezes or layoffs.

Such a situation can negatively affect the quality of banking services and employee morale, affecting the entire industry. These financial institutions are also expected to increase fees associated with various banking transactions to offset the increase in taxes. Thus, customers may feel additional pressure on their personal finances, which may have a dampening effect on economic activity and consumption.

The impact of the additional tax on the state budget also causes concern. Given that banks are the main financier of this, they may be reluctant to lend to the government or lend to the government on more expensive terms. This can lead to a larger budget deficit and difficulties in financing government projects and programs.

Also, the additional tax may negatively affect the attraction of foreign investments to Romania.

Foreign investors may show low interest in government bonds, demanding higher yields or show a lack of confidence in the stability and predictability of the business environment in Romania, which may lead to a reduction in foreign direct investment and a decrease in the country’s competitiveness. Romania’s economy is long-term.

Moreover, mistrust is also heightened by the fact that this additional tax applies exclusively to banks but does not apply to non-banking financial institutions (NBFIs), which often charge exorbitant interest rates. The difference in the taxation regime raises doubts about the fairness and impartiality of tax measures. This lack of coherence in the fiscal approach undermines confidence in the fiscal and political system. It is imperative that the authorities address these differences and take steps to ensure that tax laws are applied fairly without favoring or favoring certain sectors or organizations.

In conclusion, the additional tax imposed on credit institutions in Romania raises a number of concerns regarding its impact on the banking sector and the economy as a whole. It is important that the authorities closely monitor the evolution of this tax and consider the necessary adjustments to minimize the negative effects, maintain a climate favorable for investment and long-term economic development, as well as to restore trust in public institutions and promote more transparent activities. and a fairer business environment for all participants in the economy.

N. Red: Tenase Stamule is an associate professor at the Faculty of Business Administration (he teaches foreign languages) at the Academy of Economic Studies. He teaches the courses “Business Management” and “Intercultural Management” in German. Dean of the Faculty of Business Administration, ASE.