Romanian Travel Agencies Tour Operators Won’t Be Levied Lump Sum Tax

"ANAT asked Wednesday for clarifications over taxes in the tourism sector and the Finance Ministry has told us the lump sum tax will not be levied on travel agencies and tour operators," Martin said.

People close to the matter told MEDIAFAX recently the government is working on a list of service providers that will be charged a lump sum tax, to fight tax evasion. The services proposed for this lump sum tax include, among others, hotels and similar accommodation units, trailer parks, camps, restaurants, catering services, other food services, bars, travel agencies, tour operators, fitness centers, beauty salons, fairs, amusement parks, computer and home appliances repair services and funeral homes.

ANAT said Sunday it is deeply offended by the government's plans to impose a lump sum tax on tour operators and travel agencies on allegations the sector is prone to tax evasion and said companies in the tourism sector are among the most disciplined taxpayers.

Romania's Regional Development and Tourism Minister Elena Udrea also criticized plans to levy a lump sum tax on travel agencies and tour operators, saying tax evasion is not high among companies in this sector.

Since May 2009, Romania applies a minimum tax based on companies' reported revenue. Companies that report profit still pay a 16% profit tax, but no lower than the minimum level.

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