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PNL (National Liberal Party) proposes an alternative measure to the alleged introduction of a tax of 1pct on business turnover, a 10pct tax cut for the part of the extra profit declared, compared to the profit of the previous year, and a 16pct normal tax on the rest of the fiscal obligations, Deputy Raluca Turcan informs on Friday, told Agerpres.
"Furthermore, corporate tax payers and microenterprise income tax payers, who pay the quarterly tax due/quarterly advance payment by the due dates, will benefit from a 10pct bonus calculated on the tax due. But only if they do not register debits at the level of the general consolidated budget," Raluca Turcan told a press conference.
According to Raluca Turcan, the proposal of the Liberals "encourages economic operators to declare their profits in full, stimulates companies to pay tax obligations on time."
"The impact of these measures on the revenues of the general consolidated budget (in the short, medium and long term) will be strongly positive for the following reasons: it will generate a strong incentive for the declaration, in Romania, of the real value of the profit obtained, in order to benefit of the reduced tax rate for the difference in profit; it will determine the decrease of the "export" of profits in advantageous fiscal areas (lower tax rates), because it will be more advantageous to declare the taxable profit and pay the tax in Romania; the additional taxable profit declared in the year n+1 [higher than in the previous year - editor's note] and taxed at 10pct, will be taxed in year n+2 at 16pct, causing a significant increase in budget revenues from the long-term profit tax," said Raluca Turcan.
Turcan beleives that "any taxpayer who wants to benefit again from the 10pct rate in the year n+2, will have to obtain, calculate and declare an even higher tax than in the year n+1, and the rate of 10pct will only apply to the additional profit in the year n+2. Taxpayers who do not declare higher taxes than in the previous year will still pay only the 16pct tax rate. The 10pct bonus does not only represent a non-discriminatory treatment against the bonus that natural persons benefit from for the early payment of fiscal obligations (local taxes), but also an additional incentive for observing the quarterly calendar of budget receipts, in order to cover, in real time, the sources of financing for budget expenses. Whenever the government decision-makers considered that additional budget revenues would be obtained through increases in the taxation regime and through coercive measures, it turned out to be an error."
Former Deputy Prime Minister Raluca Turcan also stated that: "economic reality has proven the opposite - whenever simplification measures and tax rebates have been applied, voluntary tax compliance has increased, and the level of receipts from tax revenues to the general consolidated budget has increased. It would be particularly serious to adopt, once again, erroneous measures aimed at companies with foreign capital, under false nationalist arguments and in a simple and erroneous electoral logic. The data provided by the National Bank of Romania and the Chamber of Commerce and Industry of Romania shows very clearly the fact that foreign investments have an overwhelming weight in the national economy, that tens of thousands of Romanian companies depend on the orders of large foreign companies, that tens of thousands of companies have appeared and developed thanks to foreign companies, that hundreds of thousands of superior jobs are ensured in these companies and that the technological leaps of the Romanian economy were supported by the transfer know-how and technology made by foreign companies. More than that, a differentiated treatment of economic operators contravenes both the Romanian Constitution and the Treaty of Romania's Accession to the European Union."
