Payment statements for special constructions tax surpass RON 1 bn

The Public Finances Ministry (MFP) has registered on Monday payment statements of RON 1 bln from companies that have to pay the tax on special constructions, more than twice the estimate for this year’s budget, MFP Secretary of State Dan Manolescu stated yesterday at a conference organized by ‘Ziarul Financiar’ daily. He added that the government has agreed with the IMF to include in the budget smaller revenue from the special constructions tax however the revenue estimates were higher.
“That RON 1 bln is the sum declared so far, but we should see how much of it will be effectively paid, because we still have to collect another tranche in September,” Manolescu added. The MFP official pointed out that discussions are taking place in order to change the type of taxation, some sectors, such as the energy sector, being more affected by this tax; however a final decision has not been taken yet. Asked whether there will be waivers for the burdened sectors, he pointed out that the Finances have made various scenarios, however they did not reach a decision because a waiver in a certain area could generate similar requests from others, “once a path for waivers is opened other areas could subsequently offer arguments for the introduction of certain categories of exceptions.”
In this sense, Adrian Borotea, member of CEZ Romania’s board of directors, stated that the country has too many taxes and fees that the authorities are hiking far too often. He added that the company will pay RON 70-80 M this year for the special constructions tax.
Lowering CAS over lowering VAT
Likewise, the MFP Secretary of State considers that the lowering of the social insurance contributions (CAS) would represent a far more appropriate measure than the lowering of the VAT on food, because it would hike competitiveness, Romania being a country disadvantaged by the fiscal burden on labor force. He pointed out that the budget impact of the decision to lower the CAS would be of RON 1 bln for every percentage point adjusted.
Thus, in the case of a 5 percent drop in the CAS, the impact would be RON 2.5 bln this year if the measure were to be applied starting on July 1. Asked whether the CAS will be lowered on July 1, Manolescu stated that there will be talks and negotiations with the IMF representatives next week on this issue, but did not want to make “forecasts.”
In what concerns the effects of lowering the VAT on bread to 9 percent, the MFP official pointed out that so far they do not have conclusive data for an assessment because only two fiscal periods have passed for many economic agents that benefit from this measure, who are filing reports on a quarterly basis. At the same time, he pointed out that budget revenues from VAT on bread have dropped, however traders have started to report higher quantities sold, nevertheless being still too early to say whether the measure was beneficial or not.
Natural gas exports to R. of Moldova, political decision
Exporting natural gas to the Republic of Moldova will be a political decision, Economy Minister Constantin Nita, who also attended the event, stated in his turn. The minister pointed out that for the time being Romania is a closed market and does not export natural gas. In fact, Romania imports a part of its natural gas needs from Gazproom, considering that internal production does not cover consumption. On the other hand, Nita announced that the Economy Ministry wants to list copper producer Cupru Min Abrud on the stock exchange next year. The minister pointed out that another plan of the institution he leads is the retooling of some defense industry companies in order for them to export more. Cupru Min owns approximately 60 percent of Romania’s copper reserves. The copper producer was put up for sale in 2012, at a starting price of EUR 57.3 M, but the procedure was stopped because of disagreements with the winner of the tender.

Related News

Comments are closed

COPYRIGHT © 2015 - Nineoclock . All Rights Reserved |  Creare Site: AmiGio

NINE O’CLOCK The Web Edition - Your First English Language Daily [e]Newspaper in Romania