Concordia/ASE «Fiscal system in Romania: prosperity, convergence and fiscal-budgetary sustainability, about the evolution of the Romanian economy in recent years and about the tax system». 23%. This year I grow again. Do you remember 2010? A weak government, which could not reduce its expenses at the level of income, decided overnight to increase from 19% to 24% when things went terribly in the economy. The result? The crisis was extended by three years. Closed companies. Some economic criminals. Can this happen again? Tomorrow. Are we obliged to fight? Now.
♦ The only share, which turns 20, was one of the engines that pushed Romania to reach a GDP per capita at almost 80% of the European average, above the level of Poland, Hungary or Greece ♦ in 2004, Romania left to At a GDP per capita of 3,000 euros, ie 25% of the European average and reached 2024 at over 18,000 euros, ie 78% of the EU average.
The unique tax rate, initially of 16%, had a beneficial effect on the economic growth in Romania, was one of the main conclusions of the study and debate Concordia/ASE «the fiscal system in Romania: prosperity, convergence and fiscal sustainability, about The evolution of the Romanian economy in recent years and about the tax system. » «Our finding that business people was the fact that the evolution of the economy was based on a simple, easy to operate system, which is called a single quota. As you advance in knowing the economic environment, you realize that only simple things work. If you complicate them a little, they get over the head. The more experience you have, the simpler you can be. Nothing is harder than to be simple, «said Dan Şucu, president of the Concordia Employers Confederation, which represents businesses with a value of 30% of Romania's GDP. The debates also come in the context in which the government, according to the budget projection, needs an increase of revenues of 16% in 2025, to cover the expenses with a budget deficit of 7% of GDP, ie 135 billion lei. As the forecast economic growth is 2-2.5%, the business environment is of the opinion that the deficit adjustment should be done on the expense side, and an increase in income tax rate or profit would have a strong negative impact throughout the economy. .
Nicolae Istudor, Rector of the Bucharest Academy of Economic Studies: Our economy is in a long and complex integration process in the European economy. Integration is lasting. We do not know if someone can say when Romania's economy will integrate into the EU. The major problem is to ensure the competitiveness of products and services on the European market and beyond.
The study conducted by the Academy of Economic Studies (ASE) shows that the positive impact on the growth of GDP per capita in Romania of the unique tax rate was 20%. «The single quota regime had a positive effect on GDP growth per capita in the countries that introduced this system, in particular and in Romania. Our economy is in a long and complex integration process in the European economy. Integration is lasting. We do not know if someone can say when Romania's economy will integrate into the EU. The major problem is to ensure the competitiveness of products and services on the European market and not only, said Nicolae Istudor, the rector of the Academy of Economic Studies (ASE) Bucharest. Dan Şucu also said that the situation from this moment with the country's finances is similar to the one in 2010, when the government, gathered with the door due It exploded, with effects throughout the economy.
Ionuţ Dumitru, professor at the Academy of Economic Studies Bucharest: Romania exceeded Poland at GDP per capita at the parity of purchase power at the last data, from 2023. The higher economic growth was in the European countries that adopted the sole tax rate. Of the 14 countries that had GDP decreases in terms of the EU media, they all had progressive taxation. Romania recorded the fastest growth of the middle class in 2007-222, but the level is relatively low, the seventh lowest. It should be noted, however, that in 2007 Romania had the second lowest level of middle classes in Romania.
«Last year, the budgetary expenses with salaries increased by 23%. This year I grow again. Do you remember 2010? A weak government, which could not reduce its expenses at the level of income, decided overnight to increase from 19% to 24% when things went terribly in the economy. The result? Closed companies. Some economic criminals. Can this happen again? Tomorrow. Are we obliged to fight? Now, Dan Şucu said. VAT growth, explained Ionuţ Dumitru, is one of the fastest methods to bring money to the budget. He added, VAT growth has a lower impact than other taxes, such as income tax or companies profit. «Regarding the impact of VAT growth, we have some estimates that we have presented in the study, related to the economic impact: as much as it means in terms of impact on GDP. Various tax changes can have a small or greater impact on the economic activity. Why do everyone talk about VAT when the problem is to increase taxes? Because it is known in literature that VAT is the least distorting from the perspective of economic growth. The impact would be lower than it would have an income tax rate or profit, he said.
Radu Burnete, executive director, Concordia Employers Confederation: Sure we perceive a danger to the unique quota. This is why we wanted this analysis from which to see very clearly how beneficial the small share was and how we need it, at least a decade from now. Various politicians make all kinds of statements and this is a way to say: we do not need a progressive share, on the contrary, if we do it will be harder for us.
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