Fiscal policy this year disadvantages construction companies, employers
The economic entities operating in the construction sector will work in unfavorable conditions this year owing to the approved fiscal policy, said the chairman of the Employers Federation of Builders, Road Workers and Building Material Producers “Condrumat” Pavel Caba.
“The fiscal policy is not favorable for us and will not lead to larger budget revenues. We should now see what profit the companies will have at the end of 2012 and what we will pay into the budget at the end of the first quarter. It is impossible to forecast something when the economy isn’t working,” Pavel Caba told Info-Prim Neo after the Federation’s general assembly.
He stated that the construction companies should submit new bills to Parliament if they want to prosper. According to him, the Law on Public Procurement should be amended. Only the lowest price is now taken into account, not yet its ratio to the estimative cost of the construction works. The employers also suggest modifying the Law on Dwellings, the regulations concerning the attesting of personnel and construction organizations. “Together with the Ministry of Construction and Regional Development, we set up seven working groups for amending the Law on Condominium. We are preparing the Law on the Social House of Constructors for approval,” said the chairman of “Condrumat”.
In the assembly, the head of the National Employers Confederation Leonid Cerescu said that the situation of the economic entities is less favorable than last year. “A number of restrictions were imposed this year. As a result, the economic entities incur additional costs. An income tax of 12%, which was earlier zero, is now put on a part of companies. The employers are obliged to pay allowances for three days of temporary incapacity for work,” he stated.
Minister of Construction and Regional Development Marcel Raducan said the construction companies’ most serious problem is the financing. “This problem can be solved by amicable ways by the entrepreneurs and the investors. Unfortunately, the state cannot provide financial resources to reduce the interest rate on loans or to finance unfinished buildings. We support the builders by the legal framework we create,” said the minister.
The general assembly was attended by about 60 economic entities.