Representatives of SME requires the reduction of VAT

The National Council of the small and medium-sized enterprises (SME)s of the Government welcomes the intentions of reducing taxation Ponta, but requires other measures including reduction of taxation on labour and employment.

Representatives of small and medium enterprises, welcomes roughly, the intentions of Ponta Government to reduce taxation, but they considers to be necessary to supplement the measures taken into account by the current Executive with consistent reduction of VAT rates, maintaining a flat tax and possibly reduce it to 10 percent and reduce taxation on labour.

National Council of SMEs will send the requests to the Executive on Wednesday.

If these three measures could have direct implications on the budget by reducing it , the other six proposals related only by the political will of the Government, without direct effect on reducing the budget, claims the President of the National Council of private small and medium-sized enterprises, Ovidiu Nicolescu.

Thus, he will propose the Government regulation of the tax elimination and profits reinvested, resulting, for this year, to an increase in GDP by 0.5 per cent and 1.5 per cent in 2013.

You may want to simplify red tape tax or licensing fees for recalculation of natural resources by increasing taxes for profits derived from such activities.

The SMEs board has also some recommendations for future mayors, in the context of a survey, which reveals that 85 per cent of enterprises surveyed have indicated to attract investment at the local level, supporting the creation of new jobs and improvement of the business environment, as the first three priorities that should be included on the agenda of future local elected officials.

Also, the survey shows that more than half of respondents require reduction of the number of permits and authorizations and the simplification of procedures for obtaining them; reduce taxes at the local level and achieve far-reaching investment in public-private partnership.

"Those who will become mayors, Presidents of the County Councils, counselors, you must take care to balance the size of the electoral campaign. Our investigation has shown that two dimensions are neglected. It’s the bureaucratic-administrative dimension - people and businesses need less bureaucracy, more functionality of local administration and economic dimension.

"It's very important to understand that neither a mayor nor a President of the County Council cannot keep their promises in the social dimension in that area if not be more economic activity, if not be more businesses if not be more jobs employment and more revenues to the State budget," says the President of the National Council of SMEs, Ovidiu Nicolescu.

Translated by
Denisse-Meda Bucura
MTTLC, Bucharest University