Employers' organizations call for the elimination of the minimum turnover tax

In view of the construction of the state budget for 2026, the Romanian business environment launches a new public and firm appeal to political decision-makers, requesting the elimination of the minimum turnover tax (IMCA), a measure introduced temporarily, which risks becoming permanent, despite the devastating effects it generates on investments, competitiveness and the functioning of companies.

In the current complicated macroeconomic context marked by major geopolitical tensions, with restructurings, layoffs and increased pressure on operational costs, companies draw attention to the fact that IMCA adds a colossal fiscal pressure on the private sector, precisely at a time when it is trying to support its activity, protect jobs and maintain the investments necessary for the development of the economy.

Businessmen point out that the fundamental principle violated is that the tax is applied to turnover regardless of the existence of profit, a formula that contradicts modern economic rules and is not used in any developed country in the European Union. They argue that the measure completely ignores sectoral realities and economic cyclicality, particularly affects companies with low profit margins and massively reduces the appetite for long-term investments, especially in greenfield projects, although Romania urgently needs productive capital, know-how transfer and high-value-added jobs.

Data collected from the economic environment clearly shows the accelerated deterioration of Romania's attractiveness as an investment destination, with investors already choosing other states in the region, such as Poland, the Czech Republic or Bulgaria. Paradoxically, although our country is perceived as having a lower tax rate than other countries (16% corporate tax rate), the introduction of IMCA pushes the effective tax rate to exorbitant levels, reaching "even 90%" in some situations, according to the appeal sent by the Romanian business community.

Consequently, new investors avoid Romania, no longer willing to pay tax in years in which they record losses. Company representatives point out that maintaining this tax, given that Romania must integrate into European value chains and support the consolidation of continental defense capacity and competitiveness, means giving up a major strategic opportunity.

IMCA disproportionately affects companies with low margins, distorts the market, is applied cumulatively throughout the production and distribution chain, generates pressure on prices and fuels inflation. In the medium term, in a context of economic slowdown, its continued application risks eliminating many companies from the market, reducing the tax base and affecting the collection of budget revenues, due to the negative impact on investments, productivity and business development. Moreover, the business environment warns that possible decreases in state revenues could also be compensated by increasing the tax burden on companies and consumers, which would amplify the destabilizing effects.

A flash survey conducted in the business communities of the employer organizations that signed the appeal illustrates the severity of the impact: out of 80 responding companies, 55 declared that they were directly affected, with effects in multiple economic sectors, 64% postponed, reduced or reconsidered investment plans after the introduction of the IMCA, and approximately 60% reported a major impact on current operations, from the reduction of the amounts available for investments, to the increase in prices, the impact on supply chains, restructuring and personnel policies.

In the absence of real structural reforms to combat large-scale tax evasion, digitalization, increasing voluntary compliance and streamlining public spending, the extension of a temporary measure becomes an unfair and deeply harmful burden for the Romanian economy. The business community therefore calls for the elimination of the tax, the construction of the 2026 budget on the basis of a coherent, predictable and solid fiscal framework, aligned with European economic principles and practices, in the spirit of stimulating investment and competitiveness, as a foundation for Romania's long-term development.

The employer associations and chambers of commerce signatories of the appeal addressed to political decision-makers are: AHK - Romanian-German Chamber of Commerce and Industry, AMCHAM - American Chamber of Commerce in Romania, AOAR - Association of Businessmen in Romania, BRCC - British-Romanian Chamber of Commerce, BEROCC - Belgian-Luxembourgish-Romanian-Moldovan Chamber of Commerce, CONCORDIA - Concordia Employers' Confederation, CCIBRP - Bilateral Chamber of Commerce and Industry Romania-Portugal, CCIFER - French Chamber of Commerce, Industry and Agriculture in Romania, CCIpR - Chamber of Italian Commerce in Romania, CCE-R - Swiss-Romanian Chamber of Commerce, FIC - Foreign Investors Council, HRCC - Greek-Romanian Bilateral Chamber of Commerce, NRCC - Dutch Chamber of Commerce in Romania, RBL - Romanian Business Leaders Foundation.