Romania's recent fiscal reforms have ignited intense debate, with leading business organizations warning that the government's decision to retain the minimum turnover tax could hamper investment and economic growth. The controversy comes as policymakers strive to balance budgetary needs with fostering a stable business environment.
Introduced through Law 296/2023, the IMCA was designed as a budget-boosting measure targeting large companies with significant turnovers. The tax generally sets a minimum floor -- typically 1% of adjusted turnover -- for corporate contributions, differing slightly for sectors like banking and energy. Although initially suggested as a temporary fix, authorities chose to preserve the measure in their latest package of fiscal reforms, sparking protests from the business community.
A coalition of powerful business groups -- including both domestic and international entities -- have jointly called for the elimination of the IMCA. Their central arguments include:
Business leaders highlight the dangers of inconsistent and rapidly changing fiscal policies. Abrupt reversals -- such as reintroducing the IMCA after initially planning to replace it -- are said to increase risk perceptions for investors, making Romania less attractive for capital and business expansion.
They urge policy makers to achieve fiscal consolidation through sustainable measures, including:
The coalition insists that reaching Romania's deficit target (below 3% of GDP by 2030) requires more than higher taxes. Sustainable economic growth, they argue, depends on fostering a thriving business landscape, not imposing new fiscal burdens. The business leaders advocate for:
While government priorities focus on closing budget gaps, the private sector maintains that long-term prosperity hinges on an investment-friendly environment and policy predictability. Dialogue and cooperation between business organizations and authorities are seen as critical to crafting effective solutions that promote both fiscal responsibility and economic vitality.