The members of the Board of Directors of the Foreign Investors Council (FIC) met on 25 October with the Prime Minister of Romania, Mr. Marcel Ciolacu, the Deputy Prime Minister, Mr. Marian Neacșu, the Minister of Finance, Mr. Marcel Boloș, and the Minister of Economy, Mr. Radu Oprea. The main topics addressed were the reform of the fiscal system and measures to stimulate private investments.

FIC representatives conveyed the concerns of large investors regarding the turnover tax and its impact on the economy, but also a series of recommendations that could reduce the imbalances of the tax system and avoid blockages in the economy. At the same time, FIC welcomed the priorities assumed by the government regarding the tax institutions: the accelerated digitization of ANAF and the reorganization of the Ministry of Finance to increase the level of collection to the state budget. The discussions regarding the fiscal measures will continue at a technical level with the representatives of the competent authorities in order to identify the best solutions, to bring clarifications, and also to contribute to the implementation rules.

"We understand the macroeconomic context in which we find ourselves, we know the Government's efforts to reduce the budget deficit and we support the tax reform plan as mentioned in the PNRR (elimination of exceptions, increase of the tax base, etc.). However, what we did not expect was the tax on turnover, as in most countries it is a non-existent practice, with only a few exceptions in Africa and Asia, and only for certain sectors and limited in time for Poland and Hungary. Profitability margins are not directly proportional to the size of the turnover but depend on the specifics of the industry in which the companies operate, as well as on market conditions. Some companies can have very high turnovers but are operating with very small margins and having a very high contribution in the area of ​​salaries or indirect taxes (VAT and excise), which are very important in the collection to the state budget and in the economy. Estimates show that those companies whose profitability is below the 3% threshold will finance the minimum turnover tax from other sources, so they will practically give all the profit to the budget and bring money from home. Thus, we believe that are necessary three important amendments to the current legislation: ​​ensuring fair tax treatment and taking into account the rate of return per industry when calculating turnover tax, limiting the applicability of turnover tax in time and increasing tax collection, because the latter would solve the situation of budget deficits in the future." stated the President of FIC, Daniel Anghel.

At the same time, the FIC conveyed the need to set the directions for stimulating existing private investments and attracting new investments in Romania. In this regard, the invitation from the Prime Minister to collaborate in encouraging investments in the strategic areas identified by the Government was welcomed by FIC together with the commitment to contribute to the achievement of these goals. During the meeting, it was agreed to establish a working mechanism between the representatives of the Government and those of the Foreign Investors Council, with regular meetings attended also by the representatives of the Ministry of Finance and the Ministry of Economy.

For over 25 years, FIC companies have been registered and pay taxes in Romania, only in 2022 the contribution of all FIC member companies to the general consolidated budget is estimated at 84 billion RON, which represents 20% of the current revenues collected by the state in the respective year. Also, the investments made by them had, on average, the end of the 1990s as their starting point, a fact that reveals their commitment to invest in Romania in the long term. In 2022, the investments of FIC companies were over 10 billion RON, representing 25% of capital expenditures according to the execution of the consolidated budget.

FIC remains a partner for the Romanian Government in setting strategic directions for the sustainable development of the Romanian economy and consequently of the society, and also in the implementation of the European best practices and in reaching the OECD standards.

About FIC: The Foreign Investors Council (FIC) is the association that brings together the most important investors with foreign capital from Romania, approximately 120 of the largest companies in the country with a cumulative turnover representing one-fifth of the gross domestic product and having a significant contribution to the state budget. In more than 25 years since the organization was set up, FIC member companies have always sustained the importance of dialogue between the business community and the authorities. In order to contribute to the establishment of the direction of economic growth of Romania, FIC publishes every two years the White Book, which is a set of recommendations from members for the most important sectors, such as taxation, energy transition, human capital, technology, and digitalization, etc., in order to discover the best solutions for the sustainable development of Romania's economy.