The adoption of the Decree, according to which the excess profits of producers of crude oil, gas and oil refineries will be taxed at the rate of 60%, does not take into account the existing legislative framework, which already provided for a number of solidarity measures for vulnerable consumers, additional income taxes, contributions to a special energy transition fund, and as well as price restrictions in the energy sector, representatives of the Council of Foreign Investors sent on Thursday.

As a reminder, OMV Petrom will not pay the solidarity tax introduced by the Government at the end of last year, having less than 75% of its turnover from the defined sectors: crude oil production, natural gas production, oil production and production of products obtained as a result of oil refining.

The tax base is an amount that exceeds by more than 20% the average profit for the last four years, and the deadline for declaration and payment is up to and including June 25 of the following year or up to and including the 25th of the sixth month. closing of the amended fiscal year.

Thanks to the adoption of the Decree, Romania became the only country with an already existing significant additional tax, which simultaneously introduced the solidarity contribution. Two-thirds of the EU countries that decided to introduce the solidarity contribution applied a minimum rate of 33%, and more than half of the countries chose only one year (rather than two, as in the case of Romania).

Europe is facing an unprecedented energy crisis, the main challenge of which is to find balanced measures and tools to ensure viable and sustainable solutions that support all stakeholders, reduce cost pressures and protect vulnerable consumers. At the same time, important investments in the energy system are necessary to ensure energy security and independence in the future, the FIC press release also said.

The stability, predictability and transparency of the legal framework remains a vital criterion for large investors, as also emerges from the latest edition of the Business Sentiment Index (BSI), published by the Council of Foreign Investors. This criterion was not met for Romania’s energy measures, most of which were adopted in 2022 through emergency decrees without the necessary time for consultation with the parties involved, the FIC also reported.

According to the organization, although major market players are making significant efforts to adapt to the new rules, compliance and implementation are becoming increasingly difficult due to very tight timelines, numerous changes over the past year and imperfect legislation, thus affecting the functioning of the market.

Considering the complexity of the crisis and the specificities of each country (resources, national fiscal structure, existing legislative measures), EU Regulation 2022/1854 allows for wide flexibility, setting only a minimum quota of 33%, which can also be achieved through measures already in place at the level of each state

The FIC reiterates the need for a predictable legal framework and consultation with the business environment to achieve the best solutions to ensure energy security, protect vulnerable consumers and the viability of all actors involved in the energy sector, and, at the same time, openness to dialogue with public authorities bodies to provide analysis and knowledge of experts from the private sector. We remain partners of the Government in identifying sustainable measures to overcome the energy crisis, as well as to ensure the economic development of Romania. About FIC: The Foreign Investors Council (FIC) is an association that brings together the most important investors with foreign capital in Romania, approximately 120 of the country’s largest companies with turnover