Gov't planned tax measures will have a negative impact on the national automotive sector (assn.)
The absence of fiscal or legislative predictability as well as of a dialogue with the business environment before the introduction of new tax measures designed to narrow the government deficit will have a negative impact on the national automotive sector and lead to the abandonment of ongoing investment plans, warns the Romanian Automobile Manufacturers Association (ACAROM).
"ACAROM has noted with concern the intention of the Romanian government to introduce tax measures that may impact the business environment, designed to narrow the government deficit (...) The absence of tax or legislative predictability, of a dialogue with the business environment, the lack of studies of impact in the short, medium and long term before taking such decisions will have a negative impact on the national automotive sector, leading to the abandonment of ongoing investment plans, to a decrease in Romania's attractiveness as a possible destination for new projects and implicitly to the loss of an important number of jobs. We should remember that we are in a volatile economic environment both at European and national level, and any unforeseen change in tax legislation will automatically lead to macroeconomic imbalances, and a different fiscal treatment applied to companies will certainly generate negative effects on business and development plans of the affected companies," says ACROM.
According to them, "an open, fair dialogue with the national administration" can lead to "economic growth, increased competitiveness and Romania's sustainable development."
"The engine of the Romanian industry, the automotive sector, has faced numerous challenges during the last years: first the pandemic with an immediate effect of slowing down the business, then the semiconductor crisis, the conflict in Ukraine, the increase in the prices of utilities, goods and labour all adding a huge burden on corporate budgets. In addition, our industry is at the centre of a profound transformation, with all electric, connected and autonomous vehicles to be produced in carbon-neutral production facilities. We believe that this technological revolution is a great chance for Romania to reconfirm its position in the European automotive industry, especially in competition with Hungary, Poland, the Czech Republic and Slovakia. This moment is an opportunity for Romania to reduce the gap and strengthen its position at the European level. Of course, this big revolution requires a strong partnership between companies, governments and associations and joint efforts from all and, more importantly, it requires large investment that can only be sustained by long-term stability and predictability," ACAROM says in an opinion post on his website.
ACAROM is the representative organisation of the automotive industry in Romania that generates over 200,000 direct jobs, a cumulative turnover of EUR 31 billion and 29% of total exports.
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