Raising VAT to 21% in the HoReCa sector could lead to a loss of around 10 billion lei in turnover for the industry, as well as a reduction in state budget revenues and competitiveness, Florin Jianu, president of IMM Romania, said on Tuesday.
"We still do not see measures for economic revival. There are no programmes supporting SMEs, measures to assist start-ups, companies seeking to grow, or those aiming to export. Instead, discussions continue about tax and levy increases, including the proposed and, in our view, mistaken rise of VAT in the HoReCa sector. INS [the National Institute of Statistics] data shows a roughly 30% decline in tourism. Our analysis indicates that if VAT in HoReCa were raised to the standard rate, turnover in this sector alone would fall by around 10 billion lei. Because the reduced VAT rate has been in place and holiday vouchers were available, tourism turnover tripled over a few years, from 22 billion lei to 66 billion lei. If current trends continue and taxation rises, our analysis shows a decline in turnover and, ultimately, reduced state revenues and competitiveness," Jianu said at a press conference.
According to him, IMM Romania is calling for the third Reform Package to include, among other measures, the maintenance of the 11% reduced VAT rate and making tourism a national priority.
Other demands include eliminating unnecessary bureaucratic procedures and unifying the authorities responsible for collecting various taxes requested by 67.7% of entrepreneurs.
Around 60.7% of entrepreneurs are also calling for lower electricity prices, which directly affect the productivity and competitiveness of Romanian businesses, as electricity costs are on average 50% higher in Romania than in Western Europe.
Entrepreneurs are also asking for policies and programmes to support small businesses, accelerate and complete digitalisation procedures, support transport operators, fiscalise unregistered service providers, and eliminate unfair competition.
In September, Prime Minister Ilie Bolojan said that the coalition had not discussed the possibility of raising VAT but noted that when the HoReCa rate remained at 11%, an evaluation would take place in October to decide whether it should remain at this level or move to the standard rate.
IMM Romania held the press conference on Tuesday, which also addressed the planned increase of the national minimum gross wage from 1 January 2026.
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