New Controversies Related to Offshore Law: Several MPs found only after the promulgation that the law can bring "material material damage to the state" The Offshore Law, recently promulgated by President
New Controversies Related to Offshore Law: Several MPs found only after the promulgation that the law can bring „material material damage to the state”
The Offshore Law, recently promulgated by President Klaus Iohannis, raises new controversies. After the promulgation, the members of the industry committee found that an article on the legislation was ambiguous and could bring „material damage to the Romanian state” of billions of euros. Thus, the deputies in the commission, from all parties, ask for the law to be amended, either by an emergency ordinance, or by a new law. The point is that the article has undergone changes throughout the legislature, but the final form was approved after the introduction of an amendment, on the last hundred meters, in the plenum of the Chamber of Deputies, without being seriously debated. MEPs say it is a mistake in legislative technique. In particular, the amendment is not correlated with the rest of the articles on taxation. Thus, those articles lose their meaning. This is Article 18, which states that the current tax regime remains stable over the entire period of the oil agreements under execution. However, as it has been formulated, the article can be interpreted in a different sense than the one thought by initiators. The article provided for stability for the tax regime in force at the date of the entry into force of this law, but the additional income tax as defined by the law, Article 19, was not clearly stated. Practically, following the interpretation, this tax that could bring billions of euros to the budget could be ruled out.
Petrolists wrote to lawmakers: „The new fiscal regime jeopardizes Romania’s gas production.” There is a new vote in the Chamber of Deputies
The associations of oil and gas companies in Romania sent a letter to lawmakers explaining the effects of tightening the tolling system that the elected authorities want to impose on gas producers. Tuesday, December 4, the deputies in the Budget Commission are due to vote on the new, more burdensome charging system for companies, adopted by the Industry and Services Commission. ROPEPCA and FPGG, the two associations representing the companies involved in the exploration and exploitation of oil and gas in Romania, wrote a letter to deputies outlining the negative effects on the oil industry and the future of the gas extraction sector, the new fiscal framework which the elected may impose.
PSD-ALDE coalition loses majority in Chamber of Deputies – missing 2 votes to not depend on other parties
After four deputies left the PSD on Monday for Victor Ponta’s party, the PSD and the ALDE left without a majority in the Chamber of Deputies, missing two votes so far not to depend on other parties. Together, the PSD – 144 MPs after the announced movement Monday – and the ALDE – 19 MPs now have 163 deputies, while the majority of half plus one in the Chamber of Deputies required to pass organic laws and the final vote quorum is 165 votes.