At the beginning of December, the Romanian government extended the applicability term of certain energy sector taxes to 31 December 2018. When enacted in 2013, Ordinances 5, 6 and 7, were meant to apply temporarily, but their terms have been extended each year since enactment.
Ordinance no. 5 from 2013 addresses the special taxation on natural monopoly activities, such as transportation and distribution in the electricity and natural gas sector. The tax applies to each transported or distributed MWh and its value is of 0.021 – 0.184 EUR per MWh.
Ordinance no. 6 from 2013 imposes a 0.5% tax on the income from the exploitation of natural resources, other than natural gas.
Ordinance no. 7 from 2013 sets a 60% tax on the supplementary income obtained from the deregulation of prices in the natural gas sector. CMS has been actively involved, through client work, in promoting the need of a clear, stable and predictable taxation regime for the industry, while stressing the detrimental effect of the prolongation of a tax, initially motivated by temporary circumstances no longer in place.