Ionel Uleia, Prime Transaction: "Increasing the capital gains tax to 10%, without allowing for the offset of losses, would strongly discourage stock market investments"

• "I believe that the dividend tax increase should not apply to companies listed on the regulated market"

A direct increase to 10% of the tax applied to capital gains, without allowing for the offset of losses, would strongly discourage investments on the Romanian capital market, reduce liquidity, limit companies' access to financing and could lead to an accelerated migration of individual investors to foreign markets, says Ionel Uleia, president of the brokerage company Prime Transaction.

He told us: "We are discussing a tax proposal that, most likely, has not been properly explained. Currently, capital gains from stock market transactions are taxed at 1% or 3%, depending on the holding period, without the possibility of deducting losses from previous years. If the new proposal aims to increase this rate to 10%, while maintaining the current regime of non-deductibility of losses, then we are actually talking about an effective increase in the tax burden of up to 900% (compared to the rate of 1% or 3%). It is unlikely that this was the real intention of the initiators of the measure.

Given the current economic and fiscal context in Romania, a more balanced and realistic approach would be to maintain the existing structure and, possibly, a percentage adjustment - for example, from 1% to 1.1%, respectively from 3% to 3.3%. Since the tax is withheld at source, the state benefits from efficient, secure and predictable collection, without being affected by tax optimizations or selective reporting of losses. In contrast, a direct increase to 10%, without allowing for the compensation of losses, would strongly discourage investments on the Romanian capital market, reduce liquidity, limit companies' access to financing and could lead to an accelerated migration of individual investors to foreign markets, where the tax regime is more stable and predictable.

• "A pragmatic alternative, both for supporting the state budget and for market development, would be to maintain the 10% quota for dividends distributed by companies listed on the regulated market, combined with the gradual sale of minority stakes in state holdings"

Regarding the proposal to increase the dividend tax from 10% to 16%, Ionel Uleia believes that the measure should not apply to companies listed on the regulated market.

"Maintaining a low tax rate for dividends distributed by companies listed on the regulated market is beneficial for the Romanian state in the long term: these are transparent entities, with responsible fiscal behavior, which already contribute significantly to the budget. A predictable and stimulating tax regime for the regulated market attracts more companies to list, expands the tax base and, implicitly, increases budget revenues in a sustainable way.

Increasing the rate to 16% for dividends distributed by listed companies could have effects contrary to those expected: the withdrawal of some retail investors, a decrease in liquidity and the discouragement of new listings - all to the detriment of budget revenues and the development of the local capital market.

A pragmatic alternative, both for supporting the state budget and for market development, would be to maintain the 10% rate for dividends distributed by companies listed on the regulated market, combined with the gradual sale of minority stakes in companies where the state has a "It keeps the majority percentage. This would represent an immediate source of budget revenue and, at the same time, a beneficial strategic move for dynamizing the market," the president of Prime Transaction told us.