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PwC: Romanian CEOs, among Europe’s most worried about tax burden

Nine out of 10 chief executives in Romania are concerned about the increasing tax burden, while 86 percent fear the government’s response to the fiscal deficit, according to a survey.

The research by PwC, however, showed concerns levels over tax among the country’s CEOs are the second highest in Europe, after France.

However, at the same time, 92 percent of CEOs agreed that companies should “pay their fair share”.

About 84 percent think multinationals should be required to publish revenues, profits and taxes paid for each territory where they operate and 80 percent agreed it was appropriate for tax authorities around the world to share freely with each other information they have on companies.

Mihaela Mitroi, Tax and Legal Services Leader at PwC Romania, said in a conference organized by PwC that tax policy was having a high impact on business competitiveness in Romania.

“(Romania’s CEOs) fear that the measures meant to balance the budget have been taken mostly at their companies’ expense,” he said.

“In the same time, they acknowledge that the low level of tax collection is one of Romania’s vulnerabilities and strongly support initiatives to increase tax collection and combat tax evasion, which is seen as unfair tax competition.

“53 percent of Romanian CEOs expect the Government to create a more internationally competitive and efficient tax system”.

Almost 90 percent of Romanian CEOs think the government priority should be to improve the country’s infrastructure – the highest percentage in the world, while 78 percent of them thought their government had failed to achieve this so far.

Also, 65 percent indicated they would like the Government to ensure financial sector stability and access to affordable capital.

Shaun Turton shaun@romania-insider.com