Government looking for “loophole” to avoid lowering excises next year

The formula for calculating 2015 excises is still under the review, according to Finance minister, Ioana Petrescu, who refrained from saying on Wednesday whether the new taxes will be calculated based on the exchange rate announced by the European Central Bank, which would allow for smaller excises next year.

The exchange rate announced for October 1 was 4.4093 RON/EUR, 0.88 percent lower than the one announced last year of 4.4485 RON/EUR.

For this year, Romania’s Government chose to use the reference exchange rate in 2012, which was higher than the one in 2013, and added the highest inflation rate to the formula, the one from September 2013.

So excises ended up being paid at an exchange rate of RON 4.73 per EUR, 0.3 RON over the level announced by BCE.

“We have a work group currently analyzing several versions and, when they finalize the formula, whether it changes or not, we will announce it, but the new excise will come into effect on January 1. So we need to have this formula settled by the time we will design the 2015 budget”, according to Petrescu.

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Pressed by journalists to answer whether the BCE exchange rate for October 1 2014 will be used as reference or wether a new artificial exchange rate will be used, like in the case of 2014 excises, Petrescu refrained to comment.

“This excise, if we change the formula – and I didn’t say we will – would be applied starting with January 1, 2015. Yes, of course, we need to have a final formula before that date, as early as possible, in order to have a normal public debate”, according to Petrescu.