More than half of Romanian small entrepreneurs believe their businesses are threatened by the new tax hike proposed by the recently appointed government of Ilie Bolojan to reduce the budget deficit.
According to a survey conducted by Monasi Cursuri si Consultância, a consulting company of the Romanian Small Entrepreneurs Group, a group of more than 60,000 businessmen, only 4% of them said that their activity will not be significantly affected. And 60% of small entrepreneurs say they will be “strongly affected” by the tax increase and will cut costs, postpone investments and block hiring.
Another 15% assume that they will suffer moderately and will analyze the possibility of reducing expenses on a case-by-case basis, while 12% stated their intention to close their LLC in Romania and move their activity to the Republic of Moldova or Dubai.
According to ONRC (National Trade Register of Romania), the number of bankruptcies among SMEs in 2024 increased by almost 10% compared to 2023.
Logos Press Synopsis: On Monday, July 7, at a plenary session in the Romanian Parliament, Prime Minister Ilie Bolhogan presented the first package of budget austerity measures and fiscal increases. The government has taken responsibility for the package and if the opposition fails to organize a vote of no confidence in the government within three days, it will be considered passed.
The Romanian authorities took this step because of the highest budget deficit among EU countries – 9.3% of GDP, which may cause rating agencies to downgrade the country’s sovereign rating.
