Businesspeople on taxation confusion: We have had it. We are leaving Romania

Ziarul Financiar 27.07.2010

Businesspeople have been thrown off balance by the wave of proposals launched by the authorities almost on a daily basis, which largely target taxation, with some of them considering moving their businesses to Bulgaria to get away from the "politicians' fumbling around".
"The measures taken by the Government almost on a daily basis do not surprise me. I want to move Interagro's headquarters to Bulgaria in September. By then all legislation will have been translated into Bulgarian and we will be looking for a new headquarters. I would rather pay a 10% flat rate and other taxes to the Bulgarian state, and only pay tax for land and for the buildings here. I am sick and tired of the Government's measures, of the incredibly aggressive approach of intelligence services towards businesspeople. I don't want to be listened in on at any time of the day and night just because I am a Romanian entrepreneur," said Ioan Niculae, owner of Interagro, a top 3 Romanian company in terms of turnover. Interagro ended 2009 with 315 million euros (1.3 billion RON) in turnover, down 70% against 2008, when it announced 538 million-euro (2 billion-RON) turnover. The group posted 13.7 million euros (57.6 million RON) in losses, after a 16.7 million-euro (61.6 million-RON) profit in 2008.
Managers of local subsidiaries of foreign companies are equally disappointed, being in a position to promote Romania to the parent company.
Cristian Cornea, for instance, general manager of the local subsidiary of Polish group Can-Pack, which owns an aluminium packaging plant with 40 million euros in turnover in Bucharest, says he has always tried to send a message of confidence in Romania's progression, but if the Government continues to act "as chaotically and in such an amateur manner", his confidence in Romania's stability will not last very much longer.