However, businesspeople said that applying these two measures as of 2010 will be too late for the business environment, considering that the effects of the crisis will be even more visible in the second half of 2009.
“Exempting reinvested profit from taxes must be adopted by modifying the Fiscal Code. Any change in the Fiscal Code must be announced six months before being applied, this is why I do not believe that the measure will be adopted this year. Most likely, as of 1 January 2010,” Nita said.
Prime Minister Emil Boc said that this measure of exempting reinvested profit from taxes must be correlated with revenues to the state budget, considering the constraints generated by the excessive deficit procedure against Romania. “We hope, during talks with the IMF [International Monetary Fund] and EC [European Commission], to be able to apply the exemption of reinvested profit from taxes. This is one of the most important measures we are considering in order to support the business environment, and we wished we had applied it since May or April, but it must be correlated with the other measures and revenues to the state budget,” Boc said.
