The government
\nin Bucharest on Thursday passed a bill for 0.5 RON subsidies
\nfrom the budget and fuel suppliers per liter of fuel. The decision was made for
\ncitizens and companies to pay less on fuel, given the latest price spikes in
\nthis commodity. The measure is valid
\nfor the next three months and at the end of this period, the government is
\nexpected to analyze a new set of measures if need be.<\/p>\n
\n
\n
\n
<\/p>\n
The government admits however that the
\nconcrete implementation of the bill might be delayed for a while until suppliers
\nhave updated their fiscal procedures. Moreover, the measure isn’t compulsory,
\nas fuel suppliers can choose whether to cut prices by 0.25% or not. However,
\nthe Romanian Minister of the Economy, Virgil Popescu has given assurances that
\nthe big chains of suppliers will apply the measure. <\/p>\n
\n
\n
\n
<\/p>\n
At the same time, authorities have pledged to monitor
\nfuel price evolution in the months of July, August and September and to sanction
\nany new hike under the ordinance of combating speculation. On the other hand, according
\nto state secretary with the Finance Ministry, Mihai Diaconu, the measure to
\nsubsidize fuel will not increase the budget deficit. <\/p>\n
\n
\n
\n
<\/p>\n
According
\nto our estimates, the calculated impact of the 0.25% subsidy will be offset by
\nthe fact that swollen prices would have dampened consumption. Lower consumption
\nwould mean lower excise returns, and in principle we believe these could be
\noffset. The measure will boost the economy Diaconu went on to say. <\/p>\n
\n
\n
\n
<\/p>\n
He added that according to the Finance Ministry estimates,
\nstate expenses will stay around 800 million lei, which will be added to the
\nother 800 million lei the suppliers aren’t going to pay as they will be offset
\nby their taxes and duties. The impact would have been bigger had the prices
\ngone higher, says Diaconu explaining the Ministry sought to find a simplified
\nmechanism to offset these subsidies granted to enterprises. <\/p>\n
\n
\n
\n
<\/p>\n
Within 15 days since the endorsement of the ordinance, through
\nan order by the ANAF president, fuel suppliers will be made available a model
\nof application. Then the subsidy will be applied according to their fiscal
\nduties, the VAT, corporate tax, etc.
\nWe estimate that the offset will be done on the VAT side, Diaconu added. <\/p>\n
\n
<\/p>\n
(bill)<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"
Romania cuts fuel prices by 0.5 lei per liter for the next three months<\/p>\n","protected":false},"author":46,"featured_media":91182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[35106,36563,30256,40606,35654,31822],"coauthors":[],"class_list":["post-92771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-diaconu","tag-fuel","tag-prices","tag-spike","tag-subsidies","tag-vat"],"acf":[],"yoast_head":"\n