Romania considers new tax on banks' "excessive profit," targeting RON 1.5 bln

Romania's new government is weighing the introduction of a temporary tax on what it terms the "excessive profit" of banks, according to the ruling strategy confirmed by minister of finance Alexandru Nazare and cited by Economedia.ro on June 23. The measure is expected to generate RON 1.5 billion (USD 324 million) in additional annual revenue.

While the draft government programme refers to "taxing the excessive profit of banks for a limited period," it does not define the term "excessive profit," nor does it specify the duration or exact rate of the tax. A 29% rate has been circulated in media reports, but it is not included in the official ruling document.