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EY Romania: Business environment wants abrogation of GO 114 and Split VAT
The business environment asks the new government to abrogate GO 114/2018 and Split VAT measure which had negative impact on Romanian companies, said Alex Milcev, partner at the consulting company EY Romania, at a meeting with the press.
“We are looking forward that the first period of accommodation of the new government were over, so we could speak concretely about measures the business environment considers opportune. I would speak about questions we have been asked by the business environment and which we consider important,” Milcev said.
He started the list of measures needed to abrogate GO 114, which had impact on at least three industries: telecommunications, energy and banking sector.
“The whole business environment considers that order 114 was inopportune. We expect the government's stand on measures to be taken,” Milvec added.
According to him, the biggest financial impact was that of the tax on bank stock, the tax in the telecommunications and energy fields.
“In other words we consider this order should be abrogated, as the present ruling party said, when they were in opposition. Obviously a very detailed study on budget impact must be made. We all know the context: end of the year, big or small deficit, so it is not simple,”the representative of the consulting company said.
He also showed that another measure to be corrected was Split VAT, which attracted an infringement risk for Romania from EC.
“The government promoted a bill taking measures to avoid infringement- 100% optional Split VAT to avoid infringing the European directive. We expect this Split VAT to disappear for good,” Milcev said.
The EY official pointed out that other priority measures should be the law on fiscal consolidation, which is now in the Chamber of Deputies, as well as granting fiscal facilities for research and development.