Investors expect the state to stimulate investments in the economy, through a stable and predictable environment, without overtaxation – as is happening now, say officials of the Federation of Energy Employers (FPE). Every euro invested in Romania has a beneficial multiplier effect for the economy. For example, a new study conducted by FPE and Deloitte reveals that 1 billion euros invested in the onshore oil and gas sector can have a GDP impact of 5.8 billion euros (4.2 billion from direct and indirect impact and 1.6 billion euros from induced economic impact). At the same time, approximately 43,500 jobs can be created and maintained in Romania (27,700 direct and indirect jobs, in the sector and its supply chain and 15,800 induced jobs). The study also reveals a 3.1 billion euro increase in state budget revenues through tax contributions (2.9 billion euro from direct and indirect impact and 0.2 billion euro from induced impact).
In return, the state takes investors by surprise and introduces new taxes, such as the one on special constructions, popularly called the “pole tax”. Following meetings between industry representatives and ministries, the Government promised to come up with changes and clarifications regarding the aforementioned tax by the end of March, said Daniel Apostol, director general of the Energy Employers’ Federation (FPE), in response to a question from Energynomics. This has not happened yet, and investors still do not know whether and how to include it in their budgets.
“If we applied the tax on special constructions (the tax on the pole, n.r.) to the value of 1 billion euros, what does 1% mean? (10 million euros – n.r.) A considerable amount, which would have to be paid by the one who assumes the investment. Who else assumes such an investment?” declared Daniel Apostol.
“There are companies that may have financial power and assume such an investment with the risk of these hyper-taxations or there are companies that will not be able to and will give up the investment. What happens to the pole tax now? We are in dialogue with the Ministry of Finance. We have sent letters with positions in which we argued why we consider this tax to be unprofitable, incorrectly stated, we still do not know if it will be 1% of the initial accounting value of the investment, which would be disastrous, or the depreciation of the building over time, its accounting depreciation, the current value of a dam built x years ago will be taken into account. We do not know yet, the norms are being worked on. We have signals, not very formal ones, that ‘this is being worked on’ is intended to outline solutions that are as rational as possible. For now, we are facing this situation, there is an emergency ordinance that provides for the application of a new tax that will be destructive for many investments, in many economic sectors, I do not speak only on behalf of energy producers”, he added.
Apostol says that the energy price crisis and the competitiveness crisis in the industry overlap with regional geopolitical threats.
“Romania needs energy security, it needs to relaunch its industry – well, there is no industry without energy. If we want to have a competitive industry, we have to help it. How? Take great care of the development of the energy sector,” added the FPE director, who explained that any tax increase will be reflected, over time, in prices and in the burden placed on the taxpayer.
