November 20, 2017

Tax on additional incomes of gas and electricity companies

Starting 2013, the government plans to enforce a tax on the extraordinary incomes of gas and electricity companies, and at the middle of next years it will also enact a new regulation and taxation regime for oil and gas companies. The regulatory package will have two parts, the former about the fiscal contribution enforced by the Executive upon the “extraordinary” incomes earned by gas and electricity companies after the liberalization of prices to energy and gas. Economy Minister Daniel Chitoiu said, in May this year, that the money thus collected will be directed to a special fund that will serve to support vulnerable consumers. Romanian authorities promised the IMF to integrally liberalize the prices of oil and gas until year 2018, in phases and of a differentiate manner for industrial and domestic consumers. The price of gas for population will increase by 10 % a year in 2013 and 2014, then by 12 % each year during 2015-2018, while the liberalization of the energy market will begin in September, with the industrial consumers.
The prices paid by population are regulated by the Romanian Energy Regulatory Authority (ANRE), out of considerations that pertain to social protection, but the European Commission and the IMF demanded the government to liberalize the market and bring prices to the levels used in Europe.
Source: Nine o’clock (read more)

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