Survey: Romanian employees worried about proposed fiscal measures’ impact on their income, purchasing power
Roughly 61% of Romanian employees worry that the fiscal measures proposed by the government to cover the budget deficit will negatively impact their income and purchasing power and the country's economic stability, according to a recent survey by Novel Research.
The vast majority of employees in Romania (more than 82% of the respondents stating that they are aware of the tax changes proposed by the government) are concerned, inform themselves about the announced tax changes and analyze the impact they can have on a personal level, the survey revealed.
Overall, if 7 out of 10 employees are worried about the impact of government measures on purchasing power, almost 8 out of 10 employees believe that the new measures will have negative effects on the evolution of prices for products and services, thus increasing inflation.
According to Novel Research, these findings reveal major concerns about the evolution of the economy and the ability of citizens to maintain their standard of living.
Of all the changes announced by the government, those regarding the single VAT of 19% and the increase in the taxation of meal vouchers by 10% are appreciated by a significant majority (69% and 66%, respectively) as having a direct negative impact on the employee.
According to the same survey, 8 out of 10 respondents believe that the Romanian state supports the business environment to a small extent or not at all, making them worry about the announced measures' impact on the overall business market. The perceived lack of support is a deterrent to entrepreneurship and investment, potentially negatively affecting economic growth and job creation.
"82% of respondents knew about the package of changes in fees and taxes proposed by the government of Romania, which shows significant concern for the evolution of the economy and maintaining the standard of living considering that the new measures will affect the level of personal income. A widespread perception of instability may lead to low confidence in the country's fiscal institutions. This can affect the individual's economic behaviour, such as investments or long-term financial planning," said Marian Marcu, general manager of Novel Research.
Novel Research carried out the survey between August 10-21 on a representative sample of the employed population aged between 25 and 65 from the urban environment, comprised of 1042 people.