ZF English

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

27.07.2010, 23:15 10

Businesspeople have been thrown off balance by the wave ofproposals launched by the authorities almost on a daily basis,which largely target taxation, with some of them considering movingtheir businesses to Bulgaria to get away from the "politicians'fumbling around".
"The measures taken by the Government almost on a daily basis donot surprise me. I want to move Interagro's headquarters toBulgaria in September. By then all legislation will have beentranslated into Bulgarian and we will be looking for a newheadquarters. I would rather pay a 10% flat rate and other taxes tothe Bulgarian state, and only pay tax for land and for thebuildings here. I am sick and tired of the Government's measures,of the incredibly aggressive approach of intelligence servicestowards businesspeople. I don't want to be listened in on at anytime of the day and night just because I am a Romanianentrepreneur," said Ioan Niculae, owner of Interagro, a top 3Romanian company in terms of turnover. Interagro ended 2009 with315 million euros (1.3 billion RON) in turnover, down 70% against2008, 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 equallydisappointed, being in a position to promote Romania to the parentcompany.
Cristian Cornea, for instance, general manager of the localsubsidiary of Polish group Can-Pack, which owns an aluminiumpackaging plant with 40 million euros in turnover in Bucharest,says he has always tried to send a message of confidence inRomania's progression, but if the Government continues to act "aschaotically and in such an amateur manner", his confidence inRomania's stability will not last very much longer.

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