Romanian Finance Minister Liviu Voinea has indicated that the government is planning a new tax on energy producers.
Voinea said that the new tax will be imposed on producers set to benefit from the deregulation of the energy market, which will allow producers to charge higher prices for power.
The tax is intended to pay for subsidies for low income households which, it is anticipated, will be hit hardest by any energy price rises. Under the government's plans, all individuals with a monthly income not exceeding EUR350 (USD440) would qualify for the subsidies. This is equivalent to 30% of all Romanian households.
The IMF-backed liberalization of the energy sector is due to be fully phased-in by 2018, and the tax will be applicable to producers only, i.e. distributors would be exempt..
TAGS: tax | individuals | Romania | energy | regulation | Finance
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