Romanian government eases new fee imposed to telecom groups but maintains turnover tax

The Romanian government may ease one fee imposed through the controversial emergency decree (OUG) but maintains the toughest measure introduced since the beginning of this year, the tax on turnover.

A fee for using radio frequencies without license, of 0.1 percent of the annual turnover per day of using the radio frequencies, was considered unconstitutional by local large telecom groups such as Vodafone, Orange and Telekom.

But the government has prepared a draft decree that will reduce the fee to 0.1 percent of the annual turnover – registered in the previous year – for using radio frequencies without license.

However, the special tax of 3 percent of annual turnover of telecom groups will be maintained.

In December 2018, the Romanian government introduced new fiscal regulation and taxes for banking, telecom, energy and the private pensions sector through OUG 114, which caused backlash from players in these markets and led to the decision that the government would pass another OUG to amend some of the most controversial provisions.

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The Ministry put the new draft law up for public debate on Tuesday night. The most significant changes introduced on Tuesday are related to banks, energy and pension pillar II, but no major changes are prepared for the telecom groups.

On April 9, Business Review will organise the 17th edition of the Tax & Law Conference, our flagship event that offers a full perspective on the latest fiscal and legislation changes that impact the private sector. This year’s edition will focus on the raft of fiscal changes that address the telecom, energy and banking sectors, alongside the latest fiscal trends in the European Union that are also taking ground locally.