Romania's tax collection agency drafts bill on windfall revenue tax of energy producers

Romania's tax collection agency ANAF drafted and published for public consultations a bill for the levy of an 80% tax on the revenues generated by the power products in excess of RON 450 (EUR 90) per MWh.

The average price of electricity on the spot market in December, when 40% of the electricity delivered to end-users was purchased from this market, was RON 1,139 per MWh and the high price of the CO2 certificates was partly responsible for this, Ziarul Financiar reported.

A windfall revenue tax like the one proposed by ANAF was announced at the end of last year as a source to finance the energy consumer subsidies - which were enforced as of November and are going to be boosted by the Government for the period February-March.

At the same time, this windfall revenue tax can be seen as a way to offset the difference between the power generators burning fossil fuels (and for which the tax is waived) and the other power generators. In a way, this has the effect of temporarily offsetting the effects of the system of CO2 certificates set in place at the level of the European Union to discourage the use of fossil fuels or capture the so-called externalities.

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