The Romanian Employers' Association of the Pulp and Paper Industry (ROMAP), which represents 23 companies with a total turnover exceeding 1 billion euros and provides more than 5,000 jobs, joins the main business organisations in Romania demanding the elimination of the minimum turnover tax (IMCA), informs a press release from ROMAP sent to AGERPRES on Tuesday.
This additional tax directly affects the competitiveness of the sector and the capacity of companies to continue investing and producing in Romania, claims the press release.
"In the context of high energy prices, the IMCA tax becomes an additional pressure factor and significantly reduces the possibility of companies to invest, plan and remain competitive," Ionel Ciucioi, executive director of ROMPAP. was quoted in the abovementioned press release as saying.
The press release states that the paper industry is, by its nature, an energy-intensive industry, with energy representing up to 30% of a factory's total costs. Given that Romania experiences higher electricity and natural gas prices than other European countries, maintaining the IMCA amplifies the sector's vulnerabilities. Eliminating the electricity price cap, without including the paper industry on the list of vulnerable sectors, has significantly reduced the resilience of the factories in this field. Unlike Romania, many EU countries support energy-intensive industries through compensation schemes, tax exemptions or access to long-term bilateral contracts.
Also, according to the organisation, approximately 90% of the paper packaging used in Romania is produced locally, which means that the continuous increase in costs - amplified by the IMCA and high energy prices - inevitably affects packaging prices and therefore entire economic chains: the food industry, agriculture, retail and logistics.
In addition to energy pressure, the industry is faced with a major structural vulnerability - difficult access to and high costs of raw materials. Although Romania collects approximately 700,000 tonnes of waste paper annually, more than 30% of this quantity is exported. At the same time, Europe has set a recycling target of 76% by 2030, while Romania has set even more ambitious targets: 75% in 2025 and 85% in 2035, according to the National Strategy for the Circular Economy. These objectives are becoming increasingly difficult to achieve in the absence of a mechanism to prioritise the domestic need for recycled raw materials.
The employers' association states that, given this complex context, maintaining the IMCA tax only amplifies the vulnerabilities of the Romanian paper and cardboard industry.
"Romania has the chance to become a regional example in the field of circular economy and sustainable production. In order to capitalise on this potential, predictable economic policies are needed, the elimination of fiscal distortions such as IMCA and real support for a strategic industry facing multiple pressures," added Ionel Ciucioi.
ROMPAP reaffirms its availability for open dialogue with the authorities and underscored the need for coherent measures, which would ensure: reducing the fiscal pressure on energy-intensive industries, facilitating access to recyclable raw materials and strengthening competitiveness of local producers on the international market.
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