Casinos, hotels, restaurants, clubs, and other leisure structures, as well as shops, located on islands and surfaces resulting from natural changes in the territory or hydrotechnical works should be exempt from taxes and duties, including VAT, or pay lower taxes, according to a draft law submitted to Parliament for the new session.
The project had also been submitted in the previous legislature but was archived because it did not enter the legislative circuit in time.
The legislative initiative modifies the system of tax incentives, arguing that it will create a stimulating legal framework for the development of economic activities on certain lands with specific characteristics.
According to the project, in the area of hydrological basins, land surfaces have formed either through the effect of natural water and soil action (alluvial deposits, landslides, floods) or through the effect of hydrotechnical works (embankments, dams, reservoirs, drainage, diversions, and systematization of watercourses).
“These lands consist of islands, sandbanks, and the like, some having potential for economic exploitation. Today, these lands produce nothing, they lie in ruins, whereas, through a series of tax incentives and a special legal regime, they could stimulate business initiatives that bring taxes and duties to both local and national budgets. Jobs, increased state revenues, capitalization on economic potential, sustainable development – all these could be the result of tax regulations through which investors are encouraged to involve their resources and entrepreneurial skills in the interest of the community,” the project’s explanatory note states.
At the same time, for constructions and economic activities carried out on these lands, local taxes and duties calculated and owed according to the provisions of the Fiscal Code would be reduced by 50%.
All economic activities will also be exempt from the application of the VAT regime.
For gambling, all taxes and duties specific to this type of activity would be reduced by 50%.
The draft law also establishes that, within the limits of legal competencies, local authorities may introduce other exemptions and incentives, of a temporary or permanent nature.
Source: Profit
Frequently Asked Questions
What types of businesses would benefit from these incentives?
The project targets casinos, hotels, restaurants, clubs, leisure activities, and shops located on islands or newly formed land surfaces.
What are the main tax reductions proposed?
The proposal includes a total VAT exemption, a 50% reduction in local taxes, and a 50% reduction in taxes specific to gambling activities.
What is the purpose of this legislative initiative?
The goal is to stimulate investment and economic development on unused lands, such as sandbanks or surfaces resulting from hydrotechnical works.