Economy

Romania plans extra taxes on telecoms, banks, energy firms

4 weeks ago

Romanian Finance Minister Eugen Teodorivici (pictured above) announced Tuesday night plans to introduce a so-called “greed tax” on telecoms companies, banks and energy utility firms.

Telecoms and energy utility companies will be subject to an additional 3% tax on their revenues and energy companies will also see their prices capped at RON 68 ($16.6) per MWh. The extra tax on banks will be a progressive tax based on the three- and six-month Romanian inter-bank offered rate (ROBOR) and with these rates currently at 3.04% and 3.34% respectively, their extra tax will be 0.9% on assets.

The additional taxes are necessary to cover the government’s already announced plans for wage and pension increases. According to estimates of the Romanian financial press, these taxes will bring in an additional RON 10 billion ($2.45 bln) to the budget.

The business sector was dismayed at the plans – which, according to the Finance Ministry, will be put into effect via government decrees rather than going through parliament – because none of the business associations have been consulted or even notified beforehand of the changes.