The Federation of Romanian Tourism Employers (FPTR) has developed a set of measures to be included in the future governing coalition’s program, including the reintroduction of holiday vouchers, finalizing the Tourism Law, taxing tips starting January 1, 2022, and a 10% tax rate from January 1, 2023.
“Applying these measures will help tourism economic operators overcome the current situation caused by the COVID-19 pandemic and will significantly contribute to the relaunch of tourism, increasing investments in the field, and implicitly developing Romanian capital,” stated FPTR representatives.
According to them, urgent measures include:
– Measure – M2 – Working Capital – discussed and regulated in 2020 but not yet finalized. Over 3,500 economic operators have not signed or received the due amounts due to a lack of allocated funds.
– Measure – M3 – Investment Capital – which was abolished. It was reintroduced through action 4.1.1 managed by the Ministry of Investment and European Projects via the Competitiveness Operational Program. Currently, the guide is not finalized, and the final deadline for project submission is 31.12.2021.
– Measure – M4 – for economic operators in tourism, public catering, and event organizers, ensuring 20% compensation for the turnover difference between 2020 and 2019, is intentionally delayed due to lack of resources, although the equivalent of 500 million EUR was allocated by law.
Tourism employers also propose a new measure – M5 – regarding the reimbursement of expenses for materials/equipment necessary for sanitary measures imposed by law since the declaration of the state of emergency/alert, recorded in accounting records during 2020 – 2021 by operators in tourism, catering, and events.
At the same time, FPTR requests compensatory measures for losses recorded in 2021 by operators in tourism, catering, and events, especially those in municipalities, cities, and spa resorts, which will record a turnover 30% – 40% lower in 2021 compared to 2019.
FPTR representatives estimate that, under current conditions, 2022 will be the most difficult year since the pandemic’s outbreak if the future Government does not take immediate action.
Furthermore, FPTR requests the reintroduction of holiday vouchers, which proved to be a beneficial measure with major social and fiscal impact between 2017-2020; their reintroduction should be a national priority for the recovery of the workforce severely affected by the Covid-19 pandemic.
Regarding the Tourism Law, employers signal that over 2 years have passed since the draft law was registered in the Senate. Currently, the law is in the Chamber of Deputies, within the Industries Committee, which must adopt the final report to reach a vote.
FPTR also requests:
– urgent introduction of the Information System for Recording Tourism Activity in Romania,
– continuation of the Tourism Investment Master Plan, started in 2017 and interrupted due to the failure to extend the deadline,
– establishing the legal/administrative form of the central public administration authority responsible for tourism (Ministry/ANT),
– amending the specific legislation for managing tourist beaches so that only those meeting all utility conditions (sewage, water, and electricity supply) are put up for lease at auction.
FPTR also proposes taxing tips starting January 1, 2022, and a 10% tax from January 1, 2023, for tourism-specific activities (accommodation, catering, etc.), unclassified catering activities, having a positive impact on the state budget of approximately 5-7 million EUR/year.
Additionally, they request amending the Fiscal Code regarding the taxation of accommodation and meals provided by the employer – currently considered salary-like benefits and taxed at 45% – and taxing them at 10% (like meal vouchers) for a fixed monthly amount representing the value of accommodation and meals for full-time staff residing in another locality (non-commuters) or abroad.
Amending the copyright legislation (Law 8/1996) is also desired in the government program, so that tourism and catering operators pay remuneration only for the actual guest/customer.
Frequently Asked Questions
What are the main measures proposed by FPTR for the new Government?FPTR proposes the reintroduction of holiday vouchers, finalizing the Tourism Law, taxing tips, and unblocking financial support measures (M2, M3, M4).
Why is the reintroduction of holiday vouchers necessary?Vouchers are considered a national priority for recovering the workforce affected by the pandemic and have a proven major social and fiscal impact.
What fiscal changes does FPTR propose for tourism employees?The proposal includes reducing the taxation of employer-provided accommodation and meals from 45% to 10% for staff residing outside the work locality.