The Government needs to ensure a stable business environment inRomania in 2011, without frequent and unexpected changes of fiscalrules, as has been the case in the last few years, with stabilityand predictability being even more important and more beneficialthan certain fiscal incentives, say fiscal consultants.
According to experts' view, a VAT cut would be welcome, but willnot be possible this year, and the flat rate will remain unmodifiedin 2011, but a reduction in social contributions could occur,depending on the budget revenues collected, which would be a goodthing.
Consultants say a VAT cut would be more than welcome forbusinesspeople and for consumers, but do not anticipate a loweringof the flat rate considering the budget constraints and the needfor revenues.
The VAT rate has been boosted in several EU countries and it is notexpected to return to previous values, at least not until budgetdeficits fall below the target of 3% of GDP.
As for a prospective increase in the flat rate in order to raisemore budget revenues, it would not be justified if the 2011 budgethas been built on solid, prudent foundations. In addition, the flatrate in Romania is one of the lowest in Europe, so it is not verylikely foreign investors will shun Romania if the income tax staysat 16%.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
