Romanian finance minister says companies can avoid "minimum profit tax" by investing more

Romanian finance minister Marcel Bolos defended on September 21 the package of fiscal measures explaining that the companies can avoid the minimum profit tax by investing more.

The tougher taxation of microenterprises and the floor set for the profit tax paid by large companies at 1% of their turnover (adjusted for some elements, including investments) are meant to improve fiscal discipline, minister Bolos argued, quoted by Economica.net.

He complained about large companies displaying very high turnover but insignificant, if not negative, profit.

In his opinion, the higher tax for microenterprises or the 1% turnover tax for large companies should not lead to higher prices for Romanians to pay. However, if this happens, he shows himself "open" to adjusting the mechanism.

(Photo source: Gov.ro)