Public Finance minister Sebastian Vladescu says he will support the capital market development through an entrepreneur education programme and by floating the Property Fund, vaguely pledging to bring large state-owned companies on the Stock Exchange.
"We want to work with the officials of the Bucharest Stock Exchange to start a programme meant to teach Romanian entrepreneurs about the role of the stock exchange as a financing tool. We also want to boost T-bill volumes and the Property Fund floatation process is making headway. We will also stand by the Stock Exchange with regard to the floatation of stakes belonging to state-controlled companies to obtain funding," stated Sebastian Vladescu.
Fiscal incentives are not part of the list of steps the Finance Ministry will take to support the capital market. Last year, profits generated from stock exchange investments and placements in mutual funds were not taxed, in the wake of a decision made by Government Tariceanu to support the capital market amid the massive losses caused by the financial crisis. Starting this year, investors on the Bourse will again have to pay the 16% profit tax for investments younger than one year and a 1% tax in case of investments of more than a year.
"We are not talking about fiscal incentives for investors on the Stock Exchange. I have voiced my point of view on previous occasions and it hasn't changed. Investors must be equal in terms of taxation," stated Vladescu.
The tax on stock exchange profits was introduced in 2006.
"We all know we are cash-strapped. In 2008, when the profit tax was eliminated, the situation was exceptional. Now, though, we also have an agreement with the IMF and each RON to the budget counts," said Dan Paul, chairman of the Brokers' Association and BSE vice-president.
As early as last autumn, the BSE management started talks with Fi
