Romania may waive turnover tax, says PM Bolojan

Romanian prime minister Ilie Bolojan announced on November 21 that a decision will be taken in December regarding the minimum turnover tax (IMCA) applied to companies with a turnover of EUR 50 million or more, whose 16% profit tax falls below 1% of turnover, Economica.net reported. He said investors have raised concerns about the tax’s excessive impact.

The proposed repeal of IMCA has been strongly criticised by the Social Democrats (PSD), who claim the government’s measures “tax the poor and cancel taxes on the rich.”

A study by The Tax Institute, cited by Ziare.com, analysed the financial statements of Bucharest Stock Exchange-listed companies for 2022-2024. It found that companies subject to IMCA account for 40% of total economic turnover (over EUR 200 billion) and employ 22% of Romania’s private sector workforce - around 1 million people.

The study also highlighted that IMCA disproportionately affects strategic sectors such as manufacturing, particularly the automotive industry, as well as sectors with low profit margins, and impacts companies with Romanian capital.

(Photo source: Gov.ro)