The excise tax will most likely decrease in 2015

Written by: Bridgewest

The_excise_tax_will_most_likely_decrease_in_2015.jpgThe Romanian Prime Minister declared that the excise tax for 2015 will certainly be lower and mentioned that the way this tax is calculated is set according to the Ministry of Finance, along with international partners.
The Romanian Ministry of Finance is currently working with its foreign partners - the European Commission - on a formula to calculate the excise tax for the next year. Ioana Petrescu, the Minister of Finance, did not make any comments regarding the calculation method and whether or not the formula will observe the provisions of the European Central Bank which allows for a low level for excises.

A lower reference rate

The European Central Bank announced a reference rate for the Romanian leu and euro of 4.44093 on the 1st of October 2014. This rate is lower than the one used last year - 4.4485 lei/euro, meaning that the new rate for 2014 is 0.88% lower than in 2013. If the excise will be calculated according to this rate, the value will be lower starting with 2015. This year, the Romanian Government used the rate from 2012 to calculate the excise tax.
However, the calculation method does not necessarily need to be based on the rate reported for the 1st of October. The work group is currently analysing more versions for the excise rate that will apply starting January 2015.
Excise taxes are paid for the production of alcohol and alcoholic drinks, processed tobacco, luxury goods, energy products and coffee. During the first eight months of 2014, revenues from the excise tax in Romania added an amount of approximately 15.37 billion lei to the consolidated general budget. The value is nearly 11% higher, compared to the same time last year, when the registered revenues amounted to 13.86 billion lei.
Our accountants in Bucharest can provide updated information regarding this matter and other fiscal changes in Romania. Please contact us if you are a foreign investor interested in the legislation for foreign investments or if you are simply looking for professional tax services in Romania.