Survey: Almost 66 pct of Romanian entrepreneurs are against the turnover tax
Almost 66 pct of Romanian entrepreneurs are against the replacement of the profit tax with the turnover tax for all Romania-based companies beginning January 1, 2018, and only 28 pct support this measure, reveals a survey conducted between July 10 --13, 2017 on 385 respondents.
In the opinion of 75.3 pct of the surveyed businesspeople, the highest impact will be on the companies with traditionally high turnover and profit margins, and 75.6 pct consider that distribution and retail sales will be the most affected.
The survey on the replacement of the profit tax with the turnover tax was carried out by the National Council of Small and Medium-sized Private Enterprises (CNIPMMR), and of the 385 polled entrepreneurs 52.4 pct own a microenterprise; 19.5 pct own a small business; 19.5 pct - a medium-sized business; 2.4 pct - a large enterprise; 0.1 pct an NGO (association, foundation); and 6.1 pct own a different legal form of a business (employer's organisation).
"Asked if they agree with the replacement of the profit tax with the turnover tax for all Romania-based companies as of January 1, 2018, 65.9 pct of the respondents answered 'No', 28 pct answered 'Yes', and 6.1 pct gave a different answer," CNIPMMR said in a release to AGERPRES.
Asked "If the profit tax will be replaced with the turnover tax for all companies, what tax rate do you think should be considered?", 78.3 pct responded that this should be 1pct; 12.5 pct said it should be 2 pct, and the remaining 9.2 pct said 3 pct.
With respect to the sectors that will be most affected by the envisaged taxation change, the distribution and the retail sectors are seen as most affected (75.6 pct of the respondents), followed by transportation (28.2 pct) and tourism (23.1 pct).
The business owners said that ensuring predictability of taxation, the stability of taxes and mandatory contributions for a period of at least one year is paramount for themselves and for the Romanian business environment, and that no changes should be made during this one year, that is neither increase, nor introduce new taxes, fees and mandatory contributions (74.1 pct); other prerequisites highlighted by the entrepreneurs are the reduction of taxation (70.4 pct), the timely information of the taxpayers about the amendments / additions to the law "that come in force at least 6 months from the publication in the Official Journal of Romania (35.8 pct)," the document states.
The new 2017-2020 Governing Program provides for the replacement of the profit tax with the turnover tax, stating that: "we shall introduce revenue taxation for all companies in Romania (turnover tax) as of January 1, 2018. This tax shall replace the profit tax and will have 2 or 3 taxation stages."