700bn lei in fiscal incentives for depressed areas

Total investments made in depressed areas (DA) throughout July 1999 – December 2000 reached more than 1,800bn lei, according to data presented on Saturday, during the first National Conference of depressed areas.

The biggest investments were made in the Northwest region, accounting for more than 38% of the total amount. Development and Prognosis minister Leonard Cazan expressed his concern about the very limited range of activities carried out in certain areas.

He asked the investors’ representatives for suggestions to help improve things for depressed areas and promised to go on with incentives. Claudiu George Ciuciureanu, chairman of the National Association of Depressed Areas Investors (ANIZDR) requested the modification of regulations on the activity of the depressed areas, estimating that the legislation in force “has certain deficiencies that allow for speculations and interpretations and favour certain companies sneaking in to benefit from fiscal incentives and give nothing in return.”

The total value of incentives granted to investors in DA amounts to over 700bn lei, more than 80% of which accounted for exemptions from customs duties and VAT for imports, as well as VAT exemptions for purchasing domestically made goods in order to invest in the respective area.