Foreign investors say planned fiscal measures discourage large companies and distort competition in Romania
The Foreign Investment Council (FIC), the association that brings together the most important investors with foreign capital from Romania, criticises the government's recent fiscal change proposals for being enforced on short notice and also for the negative effects they will have on the economy.
The new fiscal measures package puts investments under a question mark, thus endangering Romania's economic recovery potential, FIC argues.
The disproportionate taxation of large companies may force some foreign groups to relocate their activity outside Romania but will also produce competitive distortions even in the domestic market, favouring firms already present in a market compared to newly established firms and creating unequal conditions of competition among competing producers of similar goods, FIC says.
At the same time, the sustainability of the state budget remains fragile in the absence of major changes in managing the public finances.
Finally, the recently published measures will hinder and delay Romania's process of alignment with the standards imposed by the OECD – an organisation that Romania plans to join.
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