Andreea Negru, President of ADAA: “Desperate fiscal measures will create a gap between the business environment and the state”

The fact that money is heavily looked for in the state budget is no longer news for anyone.

Also, the entire business environment is waiting to see where taxes are cut and where they are raised. We have been talking for years about predictability and the need for a coherent fiscal strategy. The introduction of “surprise” fees and taxes in the desire to collect more money for the budget will do nothing but deepen the chasm between the private and the state, will force the business environment to take measures to counteract the immediate effects and, obviously, will not have the expected effect of collection.

Andreea Negru, PhD in economics, president of the Association for the Development of Local Entrepreneurship ADAA, said: “The business community needs a stable and fair fiscal framework to feel supported in its efforts. Today we are talking about new fees and taxes that will be introduced in the economy to mitigate the escalation of the budget deficit. However, the Government must take a balanced approach: introducing them starting next year and linking them with budget spending cuts to see the results and increase confidence in a professional approach to the government act. Otherwise, desperate fiscal measures will create a gap between the business environment and the state”.

Fiscal stability throughout all the fiscal year is crucial for the development and prosperity of the business environment, and compliance with the principle of constant taxes throughout the entire fiscal year is an essential pillar of success and economic growth. Frequent tax changes will lead to confusion and errors in tax reporting, resulting in penalties and additional expenses for businesses.

“When the Government keeps its promise not to impose surprise taxes or massive fiscal changes in the middle of the year, it creates an atmosphere of cooperation and partnership between the private sector and public authorities. But when there are changes to the rules during the game, dysfunctions in the economy also appear”, concluded Andreea Negru.

Establishing constant fees throughout the fiscal year gives businesses the certainty and predictability they need to plan their investments and activities. As long as there are no sudden and unforeseen changes in taxes and fees, entrepreneurs can make informed and strategic decisions about expanding their business, hiring staff, or making investments in new technology or facilities.