Excise levels to be indexed for inflation and expressed in RON, starting with 2016

Newsroom 05/12/2014 | 12:34

The level of excises will be expressed in lei as of next year and indexed for inflation annually as of 2016, according to a draft amending the Romanian Tax Code.

“Starting with January 1, 2015, the level of excises will be expressed in lei / measure unite utilizing the RON based level practiced at the startof 2014. Starting with 2016, the level thus obstained will be updated annually with the increase in prices, from the previous 12 months and calculated in september of the previous year, communicated officially by the National Statistics Institute by October 15” according to the Ministry of Finances.

The adjustment is motivated by preventing the fluctuation of revenue from excises, which might occur as a result of variations in the exchange rate.

At the end of November, prime minister Victor Ponta said the Government will not increase taxes, including excises whom the official said “will remain at the level of 2014, without a single RON extra” given that the formula applied so far would’ve led to the excises lowering.

In October, Ioana Petrescu, minister of Finance, said that the formula for calculating the level of excises is still being analyzed. Two weeks later, Darius Valcu, delegate minister for the Budget, said that it’s entirely possible in the future the excise will no longer depend on EUR, but on RON.