Draft bill may grant tax breaks for casinos, clubs on islands and unattractive land in Romania

Casinos, guest houses, restaurants, clubs, and other businesses located on islands or land resulting from natural changes of the territory or hydrological planning may be exempted from taxes and fees, including VAT, according to a draft bill submitted to the Parliament for the new session, writes local startupcafe.ro. The draft bill aims to stimulate the opening of new businesses on islands, sand banks, and other unattractive pieces of land that have economic potential but are currently unused. The tax breaks, however, could stimulate business initiatives and lead to the creation of new jobs and higher budget revenues, according to the project’s motivation. These territories could host activities for the production of renewable energy, as well as tourism, gambling, and trade activities. The law doesn’t apply to land plots in the Danube Delta. The land plots must be owned by public authorities, which would lease them to interested. The investors would not pay any tax on the land and pay only half of the other taxes to the local authorities. Gambling operators who set up casinos and other gambling halls or clubs on these plots, would pay only half of the taxes operators in the industry normal owe to the state, such as annual licensing taxes. Bars and night clubs would also be exempted from paying tax on profits. The project was submitted by social-democrat senator Serban Nicolae, who also stirred controversy this week by proposing that people sentenced for corruption should also benefit from a pardon law the Parliament is now discussing. editor@romania-insider.com