Press release Local taxes and fees versus the development of Timisoara MIT&Horetim

TIMISOARA ENTREPRENEURS' MOVEMENT, represented by Mr. Dan Iliescu, as an initiator of business and entrepreneurs from Timișoara, and

PATRONATUL HO-RE (HOTELS AND RESTAURANTS) TIMIȘOARA, having its registered office in Mun. Timișoara, str. Romulus nr. 12, county of Timiș, C.I.F. 42672449, No. Registration in the Register of Employers' Organizations 2/06.06.2019, Established by Decision 5752/24.04.2019 of the Timisoara Court, member of the Federation of Employers in the Hospitality Industry in Romania, member of the confederation IMM ROMÂNIA (former CNIPMMR), member of APD Timis, member of OMD Timisoara, represented by Mrs. Corina Macri, Președinte,

draw attention to a critical issue threatening the city's competitiveness and well-being:

Significant increaseă și unjustifiedă local car taxes și clăresident leadersțiale și nerezidențiale.

📊 Context:

1. 📈 The tax gap: Timișoara is facing a significant increase in taxes on residential and non-residential buildings, as well as on cars, which puts it at a disadvantage compared to other big cities in Romania, such as Cluj-Napoca, Oradea and Brasov.
2. 🏢 Impact on citizens and businesses: This tax burden severely affects families and local businesses, causing increases in household spending, re-evaluation of investments and even migration to more tax-friendly cities.
3. ⚖️ Legal rulings: Courts have already issued favorable rulings against such increases, including two final ones, overturning the additional increases.

🚨 Issues identified:

• ❌ Lack of dialog with citizens and the private sector: Increase decisions were taken in haste, without substantiation, without impact studies and cost-benefit analysis, affecting the business environment and citizens.
• 🏙️ Competitive disadvantage: Timisoara loses investment attractiveness and economic stability. Over-taxation of buildings is not bearable and sustainable, it does not allow new investments, development, expansion and creation of new jobs, it reduces business competitiveness and profitability compared to all other regions of the country.
• 📉 Financial pressure on families and businesses: tax increases put an additional burden on the budgets of citizens and small, medium and large companies, hinder the development of local businesses, the prosperity of citizens, forcing the closure of companies.

🔧 Proposed remedies:

1. 📉 Revise tax rates for residential, non-residential buildings and cars, bringing them in line with the average of other large cities in Romania.
2. 🛑 Suspend tax increases planned for 2025 to prevent negative effects on the local economy and families.
3. 🤝 Promote a transparent dialog between local government, citizens and business.
4. 📑 Create a competitive tax plan that supports economic development and stimulates new investment in the city.

📌 Conclusion:

The Timisoara Entrepreneurs' Movement together with the Ho-Re Employers' Association is calling on civil society, the entire press, but also the citizens of Timisoara to actively participate in tomorrow's debate. It is crucial to work together to find fair solutions that protect the economic competitiveness of Timisoara and the well-being of its inhabitants.

All those interested can participate in the public debate organized by Timisoara City Hall, which will take place tomorrow, December 10, 2024, at 12:00, in the Council Hall of Timisoara City Hall. The debate is aimed at the draft of local taxes and fees for 2025.

Yours sincerely,
Timisoara Entrepreneurs' Movement,
Dan Iliescu,

Ho-re employers,
Corina Macri,
President

Timisoara,
09.12.2024