Investment climate "needs improvement"

These measures should help to improve the investment climate and also raise revenues to the state budget, consider Peter de Ruiter, head of the Department of Tax and legal consultancy PricewaterhouseCoopers Romania.

Business environment wants also implementing legislation on holding, boosting domestic consumption, creating jobs in strategic economic sectors, especially a reduction in labor costs.

Lowering social security contribution rates would be beneficial, including in terms of Romania's competitiveness, in our country registering now one of the largest labor tax rates in Central and Eastern Europe.

In addition, it is a measure promoted in line with trends in the European Union, said Mihaela Mitroi, tax partner at PricewaterhouseCoopers from Romania.

"There is Europe 2020 strategy, which says that we must encourage increasing the coefficient employment of people, thus reducing unemployment substantially. And this can be done, of course, by reducing taxes on labor," says Mihaela Mitroi.

Secretary of State in the Ministry of Finance, Dan Manolescu, said that in the next period will start an analysis regarding the rate reduction CAS, but such a measure could take effect as early as 2014.

Ministry of Finance representative also said that they work on a simpler and more efficient tax small as the current income tax formula is not entirely consistent with what is happening in the European Union.

"There, at the European Union level, a simplified VAT system which can replace besides indirect taxation, the VAT and certain direct taxes" said Secretary of State in the Ministry of Finance, Dan Manolescu.

Dan Manolescu added that this year it plans to clarify tax legislation, so that the Tax Code, the Implementing Rules, Tax Procedure Code and related legislation to be integrated and coordinated.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University