New oil royalties system to be submitted by Government in April

Finance-Minister-Darius-Valcov

Finance Minister Darius Valcov said in an interview HotNews.ro that he believes the new system of calculation for royalties will be presented for the first reading in the Government by the end of April. Once the draft bill is adopted by the Government, it will be sent to Parliament.

Asked if the new method of calculation will be based on taxation of the income or of the profit made by the companies in the extractive industry, Valcov said that the Ministry of Finance has not yet taken a decision in this regard, the options being now weighted.

The Victor Ponta government has extended for another year the current system of royalties, which expired in December 2014, despite repeated promises that it will bring to front a system to get more money to the state budget. At the time, PM Ponta motivated the Government’s decision by the fact that no changes can be made ‘overnight’, although the Government had begun discussions with the oil companies on this issue a year before.

“Next week Secretary of State Dan Manolescu, who deals with implementing and coordinating this project, will go to Norway. We want to learn about the experience other countries have. It is very important to talk again with the business environment, with all the political partners, because this must not be solely a government decision. There must be a Parliament decision, agreed or accepted by a majority. It is very important that this new law and the codes will be in force for a long time and we must start thinking what problems may arise in the coming years.”

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March 2015

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