Constantin Niţă: "The introduction of the flat tax is not advisable"

Cristina MihalaŞcu

Even though the introduction of the flat rate tax for small and medium and enterprises is a welcome solution, as it helps fight tax evasion, it is not advisable at this time, because it makes it harder for companies to survive, the Minister of Small and Medium Enterprises, Constantin Niţă, said yesterday.

According to him, the budget needs money right now, but the solution to this problem is finding a fiscal balance, instead of taxing SMEs which are having trouble coping with the crisis as it is.

Minister Constantin Niţă also said: "Business people are afraid of this tax because they failed to understand its usefulness, and speculation about increased unemployment and bankruptcies caused by the tax is only due to a failure of the authorities to communicate properly. Moreover, a rational businessman would favor the flat tax over the current 16% proportional tax".

• A business center in Beijing

He added that last week he made a visit in China, in order to stimulate trade between the two countries, which are both seeing a sizeable trade deficit.

The Minister of SMEs said that the Chinese Trade Minister was open to some of the 24 projects which he was presented, most of them concerning the real estate, travel and industrial sectors.

"We are going to open a business center in Beijing, which will host 10-15 domestic companies which will be promoting their products and services. This business incubator will be launched in September, and the companies that develop their business in the next six months, have a great opportunity to continue doing business in any Chinese city ", the Minister of SMEs said.