Economic analysts suggest other measures instead of VAT increase
ACT Media - 9 Octombrie 2009
Liviu Voinea and Gabriel Biris, economic and financial analysts consider that the VAT increase is not suitable encouraging fiscal evasion for VAT, which is already too high at present.
Gabriel Biris suggests the application of simplified VAT measures in the whole economy, similar to those applied to purchases within EU, while Liviu Voinea considers that the introduction of progressive VAT would be opportune. The statements were made on the occasion of the conference "Economic crisis - a predictable end?" organized by "Business and Finance" magazine.
"Tax increases in recession in order to augment budget incomes is an illusion. The increase of VAT will have an inflationist effect as any tax increase except for income taxes. It will also lead to the increase of fiscal evasion for this tax, which is already very high, up to 8% of GDP," Liviu Voines, the director of the Group of Applied Economy said.He added that he is the partisan of progressing taxing, in three stages and accompanies by deductions. The idea is to distribute more efficiently the fiscal burden. The stages of progressive taxing could be according to Voinea, 10-15-20 or 10-16-25, reported to the average wages.
Gabriel Biris, a financial consultant, said that any tax increase is not advisable. "Simplified VAT measures would be very opportune at the moment, as an instrument of fighting fiscal evasion. It means that when we say company A will sell to company B and B has the right for deduction, B should no longer pay VAT," Biris explained. These measures apply anyway to purchases within EU, Biris added.Ecoonmic analysts consider that in Romania the solution of structural problems such as attracting 4 million active persons who are not included in occupied labor force to the fiscal economy is a priority. "Anti-crisis measures applied now do not solve this type of structural problems. They are strictly monetary and have in view to finance the short time deficit" Liviu Voinea said.
Sursa: http://www.actmedia.eu
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