Are businesses consulted on new taxes and tariffs imposed by municipalities? What is their view on the balance between local services and tariff payments?

The private sector plays an important role in the development of a country’s economy and local governments play a crucial role in improving the business environment and providing the best services.

The Law “On Local Self-Government” (Law no. 139/2015) introduced several novelties regarding local government functions as well as new competencies aiming at increasing decentralization and empowering Local Government Units (LGUs) to be capable to drive local development and deliver key services to citizens and potential investors.

In July 2019, the Investment Council launched its annual survey on investment climate, to identify progress on three main areas of fiscal policies (i) tax inspection, (ii) VAT Reimbursement and (iii) informality, with a special focus on the relationship between the private sector and LGUs. Previous IC Survey (2018) showed that local taxes are considered by the big business as the third main obstacle in doing business.

The current survey aims to respond to questions such as:

• Are businesses consulted on new taxes and tariffs imposed by municipalities?
• What is their view on the balance between local services and tariff payments?
• Is business informed on Municipal Council Decisions and their impact on daily operations?

The survey will stay open until the end of September. Its results will be an integral part of the analysis to be prepared by the Secretariat, which will be brought into the table of the Investment Council in one of its upcoming meetings during 2019.