The Government will meet again Friday and adopt the OUG on fiscal measures, although the normative act is not on the announced agenda The government meets on Friday, at a new
The Government will meet again Friday and adopt the OUG on fiscal measures, although the normative act is not on the announced agenda
The government meets on Friday, at a new meeting, several drafts of decisions are made on the agenda, but according to the PSD leader Liviu Dragnea, the EGO on fiscal measures, including the greed tax, could be adopted, although the normative act is not yet on the agenda of the meeting.
The latest version of the GEO: Gas price capping should only be applied to onshore production. A quarter of OMV Petrom’s gas production is offshore. Turnover tax may decrease to 2%
The capping of the gas price to 68 lei / MWh would be applied, according to the latest version of the emergency ordinance on the new taxes discussed in the Government, only for onshore production, the offshore being to be exempted. In addition, the turnover tax imposed on companies operating on the electricity and heat market would be reduced from 3% in the initial version to 2%, sources from the government coalition said. Currently, OMV Petrom is the only offshore gas producer. According to the company’s latest annual report, in 2017 offshore production accounted for about 18% of total hydrocarbon production in Romania (6.6% of crude and condensed production and 26.5% of natural gas production). The other major gas producer in Romania, Romgaz, carries out only onshore production. An eventual Government decision to exempt offshore gas prices from capping could be motivated by an attempt not to deter operating companies from endlessly postponing the final investment decision. Already, following the adoption of the Offshore Law, Black Sea Oil & Gas, Exxon and OMV Petrom have decided to postpone these decisions, which were scheduled for this year.
Offshore law has been promulgated
On 24 October, the Chamber of Deputies voted as the decision-making body for the offshore law on the conditions for the Black Sea gas exploitation. Investors are obliged to trade 50% of gas on the Romanian stock exchange and 25% of employees must be Romanian. MEPs then adopted a PNL amendment to the offshore law, according to which the owners of the oil agreements are subject to the specific tax regime applicable to exploration, development and abandonment activities based on existing agreements.
NEGATIVE opinion of the Economic and Social Council on the OUG proposing a „greed tax” and other tax measures
The Economic and Social Council gave a negative opinion on the emergency ordinance containing the tax measures announced by Eugen Teodorovici, including the „greed tax”, confirmed for MEDIAFAX, Dumitru Coarnă, a member of the ESC.