FPIOR warns: Drastic decrease in the number of employees has a negative impact on the state budget

The hospitality industry has approximately 25,000 fewer employees compared to 2024, which would cause the public budget to lose an estimated 7.5 million euros per month in payroll taxes and contributions alone, according to a study presented yesterday, during a press conference, by Călin Cozma, executive president of the Hospitality Industry Employers' Federation of Romania (FPIOR).

Therefore, the employers' organization is asking the Government to implement a recovery plan for the period 2026-2029, which includes reducing VAT to 9%, lower taxes for low-paid salaries, relaunching holiday vouchers, state-guaranteed loans, tax debt deferrals and guaranteeing predictability.

In the moderate scenario developed by FPIOR, the application of the package could protect or recover approximately 25,000 jobs by 2029, mobilize private investments of 750 million euros and lead to a 5% increase in economic activity compared to the scenario in which the state does not intervene. The Federation specifies that these are indicative public policy simulations, not official forecasts or guaranteed results, and that they must be validated with data from the INS, ANAF, ONRC and the Ministry of Finance.

Călin Cozma, the executive president of FPIOR, stated: "We do not want to end up criticizing some measures that are being taken in the hospitality industry again, but we want to come up with proposals before other wrong measures are adopted. (...) HoReCa does not ask to be maintained by the state. It asks for stable rules, bearable taxation, access to financing and the possibility of investing. The right question is not only how much does the intervention cost, but also how much does the lack of action cost. If these measures are not taken quickly, the industry will continue to go down. We are in a coma, but we can recover. We still have a chance.”

The federation's calculations are based on the assumption of taxes and contributions of approximately 300 euros per month for each job. In the case of the 25,000 lost jobs, the direct tax revenues that are no longer generated would reach approximately 7.5 million euros per month and 90 million euros per year. The estimate does not include VAT, corporate income tax, local taxes or indirect economic effects.

The first measure requested by FPIOR is to reduce VAT for HoReCa from 11% to 9% and maintain the rate for at least three years. The facility would be granted to companies that fully audit their sales, retain jobs and have no outstanding debts or respect a schedule of payments. The federation estimates that the measure could protect or create between 3,000 and 8,000 jobs.

"We want a return to at least 9%. If we don't think about Germany, which has 7%, at least let's return to 9%. It is more important to collect taxes from companies that exist than to kill them and, after that, not have anyone to collect from. More important than collecting 11% from a company that is closing is to collect 9% from a company that is operating", said Călin Cozma.

Corina Macri, the representative of the employers' organization in Timisoara, claims that the increase in taxation did not lead to a proportional increase in budget revenues, because consumption contracted and companies reduced their activity.

"The crisis has already become more expensive for the state when measures were applied without economic support and without a realistic calculation. Instead of providing a service with three people, you end up providing it with only one, to the detriment of quality. The taxes that should have reached the state have not increased, because consumption contracted and we have lower revenues. We must continue to offer air conditioning, cleaning, food and high-performance services, but all of these come with very high costs," said Corina Macri.

Another measure requested by employers in the hospitality industry is the reduction of social contributions for the first 4,000-5,000 lei of the gross salary of employees in HoReCa activities. In the moderate scenario, FPIOR estimates that the measure could support approximately 10,000 jobs. Based on the same assumption of 300 euros in taxes and contributions per month, this would generate direct tax revenues of approximately 36 million euros per year.

The federation also calls for the relaunch of holiday vouchers at an annual value of 1,600-2,000 lei, with exclusive use in Romania and with a 20% discount for their use in the off-season, between October and May. According to the federation's moderate scenario, a billion lei granted in the form of vouchers could generate a total consumption of approximately 1.4 billion lei.

The fourth proposal is the launch of the "IMM Invest Hospitality" program, through which companies could obtain financing for working capital, refinancing, modernization and digitalization. FPIOR proposes state guarantees of 80-90%, subsidized interest in the first 12 months and repayment periods of up to three years for working capital and seven to ten years for investments. In the moderate scenario, the program could mobilize approximately 500 million euros. The Federation estimates that between 5,000 and 15,000 jobs could be supported directly and indirectly, depending on the size of the financing.

The Federation also proposes the 36-month deferral of tax debts for viable companies. In the moderate scenario, the mechanism could be accessed by approximately 2,000 companies, with average debts of 500,000 lei, which would mean tax receivables of one billion lei. With an average of ten employees per company, approximately 20,000 jobs would be associated

The other proposals included in the package are tax incentives for reinvested profits, a national energy efficiency program, financing of vocational training, the introduction of a single authorization and the conclusion of a fiscal pact valid until 2029. For investments in renovations, equipment, digitalization, automation and expansion, FPIOR proposes accelerated depreciation or tax credit. In the moderate scenario, 5,000 operators investing an average of 50,000 euros each could mobilize approximately 250 million euros. In the field of energy, the federation proposes grants covering 30-40% of investments in photovoltaic panels, batteries, heat pumps, insulation and efficient equipment. With a public contribution of 100 million euros, the total investment could reach, in the moderate scenario, approximately 286 million euros, of which approximately 186 million would come from private capital.

The "Qualified Hospitality Employee" program would require the state to cover half of the cost of professional training. In the moderate scenario, 20,000 people could be qualified, with a public cost estimated at 40 million lei. The targeted professions include cooks, waiters, bartenders, receptionists, maids and restaurant or hotel managers.

To reduce bureaucracy, FPIOR proposes the "Single HoReCa Authorization", through which companies would submit documents in a single portal, and public institutions would exchange information with each other. In the moderate scenario, 30,000 operators could collectively save 1.2 million hours per year, equivalent to approximately 150,000 working days.

The last measure is the "HoReCa Fiscal Pact 2026-2029”, which would require a minimum of six months' notice for major fiscal changes and 12 months' notice for structural changes.