Timisoara business rejects additional local tax rates for 2025

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

PATRONATUL HO-RE (HOTELS AND RESTAURANTS) TIMISOARA, 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, President, and

Communicate:

THERE IS NO JUSTIFICATION FOR APPLYING THE ADDITIONAL RATE ABOVE THE MAXIMUM TAX

The business community, citizens and civic organizations categorically reject the application of any additional rate above the maximum tax of 1.3%. We agree with the needs of the city and, for this reason, we accept the maximum tax of 1.3%, without any additional rate..

The Tax Code allows tax to be set between 0.2% and 1.3% for non-residential buildings.

• Timisoara already applies 1.31TPTP3T, the highest rate allowed by law, higher than in cities such as Cluj-Napoca, Craiova, Iași, Oradea or Constanța.
• All these cities are similar to Timisoara in terms of surface area and number of inhabitants, but they manage to manage their local budgets without additional quotas. If these cities can do so, Timisoara, with a modern administration, should be able to do the same.

We don't understand the position of some PNL members

We are puzzled by the position of some members of the PNL who propose an additional quota of 38.5%, considering it a „soft” option.

• This proposal is, in fact, still a major increase that seriously affects the environment for entrepreneurs and citizens.
• This additional rate of 38.5% proposed by some PNL members, as well as the 50%, has already been confirmed by the courts as illegal and Timisoara City Hall has been ordered to refund the money to taxpayers. There is no justification for the administration to repeat the same mistake and expose the city to new costly lawsuits.
• The Liberals, who traditionally supported the entrepreneurial environment, are now playing a dishonorable and dirty game, betraying the trust of those who supported the development of the city.

High taxes make us weaker, not stronger

1. Companies in Timisoara are losing competitiveness: With higher taxes than in other cities, local businesses cannot compete with those in Cluj, Iasi or Constanta. It is vital to leave money in the pockets of local entrepreneurs to invest, create jobs and make Timisoara more attractive.
2. City Hall alone cannot make the city attractive: Economic development depends on the entrepreneurial environment, which needs support, not additional burdens.
3. Timisoara is uncompetitive compared to other cities: The additional costs imposed by additional rates make the local economy less attractive for investors and developers. To support the entrepreneurial environment, a tax rate of 1% is needed, which would allow real competitiveness.

Entrepreneurs have supported Timisoara City Hall for six years

For the past six years, the entrepreneurial environment has borne the brunt of the tax burden, contributing significantly to the local budget. Now is the time for the City to return this support and support local businesses, leaving them the resources to invest in the city.

If the administration can't manage with 1.3%, get out!

If the current administration is not able to manage the city with a quota of 1.3%, we, the entrepreneurs, are ready to take over the management of the city. We have solutions and the will to make Timisoara more competitive and prosperous!

2025 will be a tough year for everyone

• In a year of economic hardship, any extra tax is an extra burden for citizens and entrepreneurs.
• The political class must take responsibility for cutting waste and sinecures instead of burdening the community. Voters are fed up of not being heard and seeing their voice ignored by decision-makers.

Why is 1.3% enough?

1.  Timisoara already has the highest possible tax according to the law: any additional tax burden on citizens and entrepreneurs.
2. Comparable cities fare better: Cluj, Iași, Constanța and Oradea manage to manage budgets without additional quotas.
3. The extra costs will directly affect the local economy:

• Prices for citizens will go up.
• The business environment will reduce jobs and investment.
• Timisoara is uncompetitive compared to other cities.

Illegal additional levy - we demand personal liability!

The proposed additional rate of 38.5% or 50% is illegal, a fact definitively confirmed by the court. Timisoara City Hall was ordered to return the money to taxpayers. There is no justification for repeating this mistake which will once again damage the city's budget and taxpayers' confidence.

We will publish the names of councillors who betray the community

•  The entrepreneurs' environment will make public to civil society, entrepreneurs, local and national media, political party leaders, the names of councillors who are turning their back on economic development, citizens and the business environment in Timisoara.
•  We will demand personal accountability from those who decide to support these increases at the expense of the city and its citizens. Any deviation from legal obligations or damage to the public interest by local councillors will oblige us to refer the matter to the competent bodies.

Clear demands for Timisoara City Council

1.  No additional rate: We accept the maximum tax of 1.3%, but categorically reject any additional rate.
2. Maintaining the highest possible rate under the Tax Code: Timisoara already applies the highest rate allowed by law. The proposed increases are unjustified.
3. Roll-call vote for transparency: We ask for a roll-call vote so that each local councillor can publicly state their position.

Call for responsibility

The Fritz administration must realize that Timisoara does not need additional taxes, but a more efficient management of the existing budget. If other cities, such as Cluj, Oradea, Iasi, Constanta or Craiova, can realize big projects without such tax burdens, then Timisoara, with a modern administration, should be able to do the same.

Call for action

We invite all citizens and representatives of the business community to attend the City Council meeting:

• 📍 Location: Council Hall, Timișoara City Hall
• ⏰ Date and time: December 12, 2024, 17:00

Every voice counts! Let's show that Timisoara does not accept unfair taxes!

Timisoara needs fair taxes, not illegal burdens!

Together we can protect Timisoara from wrong and abusive decisions.

Yours sincerely,

Timisoara Entrepreneurs' Movement,
Romanian Entrepreneurship Association,
Dan Iliescu,

Employers Ho-re Tim,
Federation of Hospitality Industry Employers,
SME Representative Romania,
Corina Macri,
President

Timisoara,
11.12.2024