New wave of increase in prices at the start of 2014


Fuel and gas prices will go up, as well as alcohol and tobacco excise taxes, while jewelry and other items will be subject to taxation.

Natural gas prices for households went up 1 per cent beginning January 1, 2014, while prices for industrial consumers rose 2 per cent, in a new move towards the liberalization of the natural gas market, president of the National Energy Regulatory Authority (ANRE) Niculae Havrilet added recently.
‘The price rise is practically half the one set forth in the initial liberalization calendar, which provided an increase by 2 per cent for the population and by 4 per cent for industrial consumers, respectively, as of Jan. 1, 2014,’ said Havrilet. According to the calendar established by the Government and the IMF in 2012, the market’s full liberalization for households should be achieved by December 31, 2018. For the industrial sector, the calendar provides the full liberalization by December 31, 2014, but according to the Electricity and Natural Gas Law, the deadline may be extended by one year if the difference between the price of gas from domestic production and import gas is found to be too high this year. The price of domestic output gas is now around 200 US dollars per 1,000 cubic meters, while the cost of import gas is about 400 US dollars per 1,000 cubic meters, Agerpres reports.
At the same time, ANRE’s Regulatory Committee has decided to further keep the electricity price unmodified for both households and industrial consumers.  ‘The decision was taken based on the outcomes of the analysis conducted according to the provisions of the Pricing and Tariff-setting Methodology for end customers who do not exert the eligibility right, approved under ANRE Order No. 82/20.11.2013.”
Gasoline and Diesel fuel prices have also gone up as of January 1, despite the government officials’ decision to postpone increasing the 7 eurocents/liter fuel excise tax until April 1. Fuel prices have gone up as a result of changes in the excise tax calculation method, namely the exchange rate taken into account is no longer the rate for October of the previous year; instead, if this value is lower, the rate taken into account will be the rate for October 1 of two years prior, updated in accordance with the average inflation rate for September of the previous year, according to revista22.ro.
Beginning April 1, if the government does not change its mind with regard to maintaining the increase in excise taxes, stage two of the 40 bani/liter price increase process resulting from Fiscal Code amendments will be applied.
The new year will also bring new taxes or an increase in existing taxes. As of January 1, the government has introduced a special construction tax, according to alba24.ro, amounting to 1.5 per cent of construction value, which will most likely lead to further prices increases. Starting this year, companies that own pools for business purposes, as well as natural persons who own jewelry or hunting or personal use weapons will also be subject to taxation. For instance, gold or platinum jewelry will be subject to a EUR 1 or EUR 2 per gram tax, depending on the number of karats. The tax for hunting weapons is between EUR 500 and EUR 1,500, depending on the respective value.
In addition, alcohol and tobacco consumption will cost more. The tobacco excise tax will go up to 67 per hundred thousand cigarettes, which means a pack of cigarettes will cost 50 bani more. The alcohol excise tax will go up to 33 per cent, from EUR 750 to EUR 1,000 per hundred thousand pure alcohol.

Leave a Reply

Zenko theme , Seo , Health , Dating , Money , Cheap hotels , Cheap flights