Romania's ruling coalition mulls over turnover tax for energy companies

Changing the corporate profit tax to a turnover tax in the case of the energy companies is a scenario considered for the 2019 budget planning, according to G4Media.ro quoting unofficial sources within the Romania’s senior ruling party, the Social Democratic Party (PSD). This indicates two major facts: the Government has not reached the final form of the 2019 budget planning and still needs to find additional revenue resources. The sources indicated a 5% turnover tax rate as considered. It is not clear at this moment if finance minister Eugen Teodorovici and prime minister Viorica Dancila agree with such plans that are reportedly pushed by PSD leader Liviu Dragnea and his close advisor Darius Valcov. The reason for this change would be the need to attract additional funds to the state budget in 2019 to cover the growing needs: the increase in pensions from September 1, 2019, that generates RON 8.4 billion additional burden next year, and the salaries of the public servants from January 1 (another RON 17 billion additional cost compared to last year’s payroll). The proposal came in the context of Liviu Dragnea having issued a tough warning to multinationals, banks, supermarket chains and telecom companies, which he has accused of transfer pricing. Romania’s 2019 budget planning remains in limbo Romania’s ruling party leader asks Govt. to deal with “banking greed” editor@romania-insider.com (photo source: Pixabay.com)