The head of the Metals Employers Association Valentin Eșanu warns that attempts are being made to reestablish monopolies on the collection and export of ferrous and nonferrous metals.

In a news conference at IPN, he explained that letter “y” of Article 20 of the fiscal and customs policy document for 2020 makes him think so. The reasons are not known, but the list of waste on which income tax withheld at the source of purchase is not imposed includes plastic, paper and glass waste, but does not include metals. This means the population will pay the tax rate of 12% when selling metals.

According to the changes proposed by the Government, which were accepted by the responsible parliamentary commission and by the MPs, the citizens will have to pay about 800 lei a tone when they sell 1 tonne of scrap iron. The phantom companies that work under the protection of a number of state institutions will accept metals without compiling purchase documents, while those who collect iron will go to the firms that work illegally so as to avoid paying taxes.

These phantom companies will ensure the origin of goods through interposed companies that belong to the same owners. When a company buys metals from another company, the tax rate of 12% is not paid to the state. This way, private individuals could take their scrap iron to companies that work illegally.

The head of the Metals Employers Association considers this amendment to the legislation will encourage the expansion of the underground economy.

Valentin Eșanu voiced hope that the fiscal and customs policy document for 2020 will be corrected as regards the income tax withheld at the source of purchase and scrap iron will also be put on the list.