The American Chamber of Commerce, Appeal to politicians. “Romania no longer has the luxury of postponing the difficult decisions and delaying the assumption of policies”

The American Chamber of Commerce in Romania (AMCHAM) argues, in a statement sent on Friday AGERPRES, that the delay of a political agreement for the formation of a stable government to assume the economic and fiscal measures that Romania needs to increase the concern among the business community, the tension in the society and transmits negative signals to the institutional partners, the financiers and the rating agencies.

“On behalf of the more than 600 active member companies in Romania in 32 economic sectors, we send a call for alignment for the adoption of the solutions that Romania urgently needs. The business environment wants Romania's interests and well -being to be placed above political agendas and the solutions that will be adopted not to lead to the deepening of the society. Amcham said.

The organization considers that our country “no longer has the luxury of postponing difficult decisions.”

“For us, at the level of the business community, it is clear that Romania no longer has the luxury of postponing the difficult decisions and delaying the assumption of policies to respond to the emergencies of the moment, as well as to a coherent vision for the economic course of the country in the long term,” added Amcham.

Amcham warns that “major” risks are planning on the economy.

“The European Commission is waiting for a coherent plan from Romania at the meeting of the Economic and Financial Business Council (ECOFIN) on July 8, and the Fitch rating agency yesterday sent a concern in the perspective of issuing the evaluation report on August 15. It agrees the situation.

According to Amcham, the significant reduction of the waste with the clear prioritization of the destination of the budget allocations is the foundation of a sustainable recovery. There is no viable alternative without this step, along with assuming real and brave measures to reduce tax evasion and VAT gap, representatives of the organization say.

AmCham, about the unique share and progressive taxation

Amcham said that the benefits that the unique tax rate in Romania growth “are undeniable: the significant expansion of the middle class, the increase in labor market, the reduction of black work, intensifying the real economic convergence”.

“The unique share remains one of the few competitive advantages that Romania still has in the region, in the competition for maintaining and attracting investments. It is a simple, transparent and predictable system, easy to administer, for both the state and for taxpayers,” says Amcham.

Amcham Romania supports the application of a generalized unique share for all categories of income, eliminating all portions and exceptions to allow a higher collection and concentration of efforts on real structural reforms.

“By contrast, the introduction of a progressive tax system at this time of fiscal and macro-budgetary uncertainty will, rather, determine an emphasis on the imbalances. The countries that have passed to the progressive taxation have done it only after long periods of transition, with serious technical preparations and extensive campaigns of information of the taxpayers. An excessive budget deficit in a short interval, progressive taxation is not a real solution.

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