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Foreign investors: VAT increase should be followed by a package of stimulants for investment promotion

The increase of VAT at 24% will have negative effects on the economy, the representatives of the Council for Foreign Investors (CIS) said, considering that the measure will discourage investments.

The representatives of foreign investors appreciate the government should implement measures to lead to the efficiency in the public sector and the stimulation of investment, in order to compensate for the negative effects of VAT increase and to promote economic growth.

Foreign investors show that, following this measure, Romania will become one of the countries in the EU with the highest level of the VAT.The increase of VAT « will lead to inflation, reduction of consumption and slowing down of the economic growth.Another consequence will be the depreciation of the leu, with supplementary pressure on those who have loans in foreign currency. Fiscal evasion and lack of trust on financial market will result » a press release of the Council for Foreign Investors says.

Moreover, CIS is worried by the very short time the companies have to implement the measure of increasing VAT which will affect their business. At present, the companies use complex IT systems which require time and financial resources to be adjusted.In order to compensate a part of the negative effects of the VAT increase and to stimulate the economic growth, foreign investments believe the government should implement a package of measures to encourage investment. At the same time, the government should continue to reduce public expenditure, bureaucracy and to improve efficiency in the public sector.

CIS shows its disappointment to the measures of VAT increase and make an appeal to the government to implement the package of measures they established to encourage the economic growth and the increase of budgetary income.

Sursa: http://www.actmedia.eu

Tags: package investment should increase investors foreign

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