SIMILAR ARTICLES

Brussels offers Romania four months to take measures to correct significant deviation of structural deficit

The European Council issued on Tuesday a new recommendation, at the request of the European Commission, based on the significant deviation procedure, with Romania being… Mai mult

9 ambassadors repeat: Venice Commission’s opinion is needed to amend laws on judiciary

The nine ambassadors who met on Wednesday with Minister Tudorel Toader shared their “concern over the draft laws on the reform of the judiciary discussed… Mai mult

Eurostat: Romania had second lowest tax to GDP ratio within EU, in 2016

In Romania, the ratio between the revenues that must be collected from taxes (including social contributions – tax/GDP ratio) and GDP was 26% in 2016,… Mai mult

Split VAT at the Chamber of Deputies: Dilemmas of all kinds. Thresholds for outstanding payments have increased 10 times, Budget Committee to resume debates on Monday

The Budget Committee of the Chamber of Deputies has increased ten times the threshold of the outstanding VAT obligations from which companies will automatically be… Mai mult

British Vitruvian Partners bought 30% of Bitdefender

Vitruvian Partners investment fund acquired about 30% of Bitdefender from Axxess Capital and becomes the second largest shareholder in the company, valued at over USD… Mai mult

Mihai Tudose about royalties: A new law to enter into force on January 1, 2018; royalty level will “depend on companies’ behaviour” in terms of prices pushed by the new excise duty

de Vladimir Ionescu 28.8.2017

Prime Minister Mihai Tudose has announced the date of January 1, 2018, as a “certain” term for the entry into force of a long-delayed new law on royalties, according to statements made on Sunday evening at Antena3.

“We are still working on the Law on royalties (…) We will definitely have to adjust the royalties (…) by 1 January 2018,” said Mihai Tudose.

In this context, the Prime Minister once again assured that the possible increase of the excise duties will not generate a rise in the fuel prices.

In his statements, the head of the Government was reserved about the dimension of the possible increase in royalties: “Let us see how they behave (the companies – editor’s note) (…). It depends on their behaviour“.

At the end of July, the Minister of Economy promised to submit to the public consultation the draft Law on royalties by September 1, 2017, as well as the Mining Act and the Mineral Waters Act. On Thursday, August 17, only the draft Hydromineral Resource Act was published, according to which the annual operating tax will reach 100 euro/ha, without indicating the level of the fee.

Producers that bottle water based on licenses from SNAM (National Company of Mineral Waters) pay now a fee of 9.3 lei for every one thousand litters of water taken from the leased springs.

A long-delayed law

The completion of the draft Law on royalties has been postponed several times since 2014 when the old law had to be replaced. In January this year, former Finance Minister Viorel Stefan aimed to finalize the Law on royalties in the first quarter of 2017.

The royalty system for oil and gas has been in place, unchanged, since 2004 when it was set for the privatization of Petrom. The system had been prolonged twice, in 2014 by the Ponta government, and afterwards, de facto, by the Ciolos government, which did not get the chance to promote the amending law anymore.

Rising royalties has been a subject of controversy between the government officials and companies exploring and exploiting the country’s mineral resources. The most prominent producer is OMV Petrom, which extracts almost all the country’s oil production and almost half of its natural gas.

OMV Petrom hinted, at some point, that it could slow down investments in the Black Sea perimeters where it discovered significant natural gas deposits if the royalties were not set at a convenient level. The company has indeed reduced investment and invoked the low oil price.

Alexandru Petrescu, a former Economy Minister in the Grindeanu government, advocated in February for establishing the royalty system “at the right level from a regional perspective, on different types of resources.”

Viorel Stefan supported the introduction of a “20% additional tax on the profit obtained from the exploitation of the natural resources that are not processed in Romania”.

Currently, royalties range between 3.5% and 13.5% of the production value, depending on the size of the deposit.

Mergeți în homepage ›

Publicat la data de 28.8.2017

Lăsați un comentariu


NEWS

Brussels offers Romania four months to take measures to correct significant deviation of structural deficit

The European Council issued on Tuesday a new recommendation, at the request of the European Commission, based on the significant deviation procedure, with Romania being… Mai mult

Eurostat: Romania had second lowest tax to GDP ratio within EU, in 2016

In Romania, the ratio between the revenues that must be collected from taxes (including social contributions - tax/GDP ratio) and GDP was 26% in 2016,… Mai mult

9 ambassadors repeat: Venice Commission's opinion is needed to amend laws on judiciary

The nine ambassadors who met on Wednesday with Minister Tudorel Toader shared their "concern over the draft laws on the reform of the judiciary discussed… Mai mult

British Vitruvian Partners bought 30% of Bitdefender

Vitruvian Partners investment fund acquired about 30% of Bitdefender from Axxess Capital and becomes the second largest shareholder in the company, valued at over USD… Mai mult

Split VAT at the Chamber of Deputies: Dilemmas of all kinds. Thresholds for outstanding payments have increased 10 times, Budget Committee to resume debates on Monday

The Budget Committee of the Chamber of Deputies has increased ten times the threshold of the outstanding VAT obligations from which companies will automatically be… Mai mult

Competition Council: Food price increase could be caused by demand excess from budget deficit

The Competition Council started an analysis, following the request of the Ministry of Agriculture, to establish the causes of the accelerated food price increase this… Mai mult

Seizure of all Liviu Dragnea's assets to recover EUR 28 million in Tel Drum case

Liviu Dragnea at the exit of the DNA headquarters where he was expected by a group of supporters and another of protesters. DNA prosecutors have… Mai mult

Rompetrol saga, chapter about money: Government asks KazMunaiGaz to pay the historical debt and demand settlement of case in court

The extension of the memorandum between the Romanian state and KazMunaiGaz, the owner of the Rompetrol Group, will be discussed only after the company's historical… Mai mult

"Not only we have not died, we rank third in the world" - Government approved second budget amendment, deficit of 2.96% of GDP

The second budget amendment this year has been adopted at the government meeting on Wednesday. As the Finance Minister assures, this amendment is "positive", the… Mai mult

Mayors: Government to offset by state budget money municipalities’ losses following tax measures

Mayors accepted on Tuesday in the negotiations with Prime Minister Mihai Tudose and several cabinet members, the promises made by the government officials to partially… Mai mult

Competition Council, "worried" that municipalities are establishing their own companies

The establishment of own companies by local administration to manage the services at the local level is worrying for the competition authority, Bogdan Chiritoiu, President… Mai mult

Draft legislation on judicial system in Parliament – to be debated as a matter of emergency

The ruling coalition registered with the Chamber of Deputies on Tuesday the draft amendments to the three important laws for the judicial system: Law 303/2004… Mai mult

Negative opinion and analysis of Fiscal Council on tax changes. "Tax package" costs 5.2 billion, not planned at all

The Fiscal Council issued a negative opinion on the proposal to amend the Fiscal Code, according to the opinion published Friday on the institution’s website.… Mai mult

Negative opinion from CES for Tax Code changes, Government meeting postponed

The Economic and Social Council, a consultative body of the Parliament and the Romanian Government, issued a negative opinion on Tudose cabinet's draft amendment to… Mai mult

Doing Business 2018: It is easier to do business in Republic of Moldova than in Romania

Romania ranks 45th in the Doing Business 2018 ranking by the World Bank (WB), with a total score of 72.87 points, right under the Republic… Mai mult