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Turnover tax to cause losses between 35% - 83% to companies in goods distribution sector
The turnover tax will cause losses between 35% and 83% to companies in the goods distribution sector, according to the representatives of the Association of Romanian Goods Distribution Companies (ACDBR).
"Based on the signals received from the members in the territory and the analyzes made regarding the activity of our partners in traditional trade, most of them being small retailers, the Association of Companies for the Distribution of Goods in Romania (ACDBR) draws attention that the turnover tax will had a negative impact on the economic sector of goods distribution, and implicitly on the national economy, for the following reasons: According to the version of the bill on the table of the Government and which is going to be sent to the Parliament, all the companies that carry out their activity in our country would have to be taxed with 1% of the turnover, if it exceeds the amount of 50 million euros. We note that such taxation cannot be supported by FMCG distribution companies, where the profit margin depending on the products distributed is on average between 0.47% and 3.4%. The application of such taxation in the traditional distribution sector of consumer goods would have a negative impact on the activity carried out by companies that are members of ACDBR and not only, but also on traditional trade, that is, of the small retailers and HoReCa in our country", reads a press release of the association sent to AGERPRES.
According to the organization, at this moment, in real terms, the profit margin of a distribution company in the field of tobacco products (products that generate, after oil products, the highest value from excises to the state budget) is between 0.47% and 1.37%, and that of a company in the field of food and beverage distribution is between 1.5% and 3.4%.
ACDBR mentions that the application of a tax rate of 1% on turnover exceeding 50 million euros would burden the financial situation of distribution companies, making this activity practically unprofitable and blocking the supply of over 60,000 companies from the traditional market and the HoReCa field.
Also, the ACDBR states that the new minimum turnover tax would be applied to goods distribution companies, after through Emergency Ordinance 67/2023 the Government increased the capping of the commercial addition to 14 basic foods on the entire distribution chain at the maximum level of 5%, which has already caused a decrease in the profitability margin of economic agents in this sector of activity.
