“I believe that the minimum profit tax should be a transitory measure for 2009. To some extent, it has served its purpose. It raised the responsibility of certain economic agents who omitted to adjust their activity or, better said, the inactivity of some enterprises. Consequently, as of next year, I could see the introduction of a lump-sum tax which, this time, will allow the budget to receive firm amounts, and is applied to the tax payers who are engaged in tax evasion by not declaring all revenues from fields which are more difficult to control, such as bars, restaurants, coffee shops, or car washes,” ANAF’s President told Business Standard yesterday.
“If this lump-sum tax were collected by the local budget, we would respect the principle of budget decentralization and stimulate local communities to collect the tax, as this would represent their own income. Also, the transfer of funds from the state budget to local authorities would decline,” Blejnar said.
Introduced in early May, in order to raise budget revenues, the first effect of the minimum tax was the suspension, cessation, or dissolution of tens of thousands of local enterprises. According to the latest data published by the National Trade Register Office, 13 times more enterprises suspended their activities in the first nine months of 2009 than in the corresponding period in 2008, mainly due to the introduction of the minimum tax.
Less than two months from the time this tax went into effect, the authorities announced they were considering eliminating the minimum tax, in spite of the fact that it has brought in revenues worth RON 291.7 million (€69 mln).
