Radio România Internațional

Tag: VAT

January 15, 2025 UPDATE

CULTURE DAY In Romania, January 15 was National Culture Day, marking the birth date of the national poet Mihai Eminescu. This year was all the more special as it celebrated the 175th anniversary of the birth of the greatest Romanian poet of all times. Many events took place in Bucharest and throughout the country, including conferences, debates, concerts and exhibitions, and entry to many museums was free. The Bucharest National Opera celebrated National Culture Day on Wednesday evening with a gala performance celebrating Romanian culture as expressed in faith, art and identity. The “Luceafărul” exhibition was opened at the Bruckenthal National Museum in Sibiu, the Lyric Theatre in Iași scheduled a special performance, while an exhibition called “Past, Present and Future” was opened at the Corvin Castle. On National Culture Day, the Radio Romania Culture channel invited a teenager from Vâlcea (south) to the theatre for the first time. With this symbolic gesture, the only national radio station dedicated exclusively to the arts calls on people and institutions to facilitate access to culture for their peers.

PROTEST The ‘CulturMedia’ National Federation of Culture and Press Trade Unions protested on Wednesday, on National Culture Day, wearing white armbands, to warn against the underfunding of the culture sector and the salary inequities to which employees of museums, libraries and cultural centers are subjected. The Federation demands that 1% of GDP be earmarked for Culture, that the salaries of museum and public library employees be brought in line with the education payment scheme, the elimination of the huge salary disparities between employees of performing arts institutions and employees of public museums and libraries, bonuses for work carried out on weekends and public holidays, as well as the payment of overtime. The unionists also demand that hiring be resumed, to counter the chronic personnel shortage in cultural institutions.

BUDGET The VAT will not be increased, Romania’s PM Marcel Ciolacu promised, after talks on the 2025 state budget bill with the finance minister, Tánczos Barna, and with the head of the national tax administration agency, ANAF. Ciolacu added the tax reform is expected to help bring down the inflation rate and increase people’s spending power. PM Marcel Ciolacu reiterated that the 2025 state budget bill will be passed by the government by the end of this month and will subsequently be sent to Parliament, for review and endorsement in the first week of the legislative session due to begin in February. He also said that the 7% deficit target agreed with the European Commission will be maintained, as will the target of 7% of GDP for investments. The PM also said that last year state revenues went up by 27%, and this year a roughly 30% increase is expected. The main indicators for the 2025 budget will be presented at Thursday’s government meeting. Also on Thursday, the Cabinet is to approve the presidential election timetable.

INTERESTS The Board of Directors of the National Bank of Romania has decided to keep the key interest rate at 6.5% per annum. Also, the lending facility interest rate stays at 7.50% per annum, the deposit facility interest rate at 5.50% per annum, and the minimum reserve requirements for banks’ national and foreign currency liabilities will also stay unchanged. Last year, the central bank lowered the key interest rate twice, in July, from 7% per annum to 6.75% per annum, and in August to 6.5% per annum. The key interest rate had not been changed since January 2023. According to the bank, the annual inflation rate rose in the last three months of 2024 more than expected, to 5.14% in December, from 4.62% in September. The National Bank estimates the inflation rate will decrease in the first quarter of 2025, but slower than previously expected. Significant uncertainties and risks related to inflation arise from the future tax and revenue policy, given the implementation of the set of tax and budget related measures recently approved by the Government for the purpose of fiscal consolidation, but also from the situation on the labor market and the wage dynamics in the economy. At the same time, significant uncertainties continue to be linked to the evolution of energy and food prices, as well as to future developments in the crude oil market, amid geopolitical tensions, central bank experts argue.

ELECTION The MP Emanuel Ungureanu (Save Romania Union) has filed a criminal complaint with the Prosecutor General’s Office against Romania’s Prime Minister Marcel Ciolacu and the head of the Timiş County Council, Alfred Simonis. Ungureanu said the complaint was related to the the two officials’ TikTok chat about redirecting votes from the Social Democratic party to the Alliance for the Unity of Romanians candidate George Simion in last year’s presidential elections. He accused Ciolacu and Simonis of corrupting voters and misusing influence and authority to obtain undue benefits, as well as preventing the exercise of electoral rights. Emanuel Ungureanu called on prosecutors to question the heads of Social Democratic Party branches and to conduct computer searches to see if the call to direct votes to George Simion and Călin Georgescu circulated on the Social Democrats’ WhatsApp groups. (AMP)

15 January 2025
January 2, 2024 UPDATE

QUAKE Romania stands
by Japan in these difficult moments, the country’s president, Klaus Iohannis,
said in a message which he conveyed on Tuesday along with condolences for the
victims’ families. We recall that authorities in that country are in a
battle against time in their attempt to find survivors after the 7.6 magnitude
earthquake on Monday, which was followed by many aftershocks. According to
provisional tolls, scores have been killed and hundreds of buildings destroyed.
Numerous fires caused by broken pipelines have been reported in the north of
the Noto peninsula, close to the quake’s epicenter. With sub-zero temperatures
at night, rescuers are making great efforts to find survivors.

WEATHER
According to sources with the Environment Ministry, 2023 was the hottest year
in the history of Romania’s weather forecasts. The average temperature stood at
12.5 degrees centigrade, two degrees above the average of the period between
1981 and 2010. At the same time, the 2012-2023 interval becomes the hottest
period in the country’s history of weather forecasts. Last Christmas also
proved to be the hottest since the beginning of weather monitoring in Romania
with 21 degrees centigrade at Calafat, in the south. And according to
Copernicus Climate Change Service, 2023 was also the hottest in Europe, where
experts have again been cautioning against the ongoing global warming, as the
greenhouse gas emissions are growing. According to Romania’s Environment
Minister, Mircea Fechet, this means that the extreme weather phenomena will
increase in frequency and intensity causing more damage and killing more
people.

PRICE HIKES The new year has brought a
series of fiscal amendments to Romanians, ranging from new VAT rises to other
majored excises and taxes. Fines have also been raised, and companies reporting
over 50 million euros in turnover will be paying taxes of at least one percent
of their turnover. Tobacco excises have been raised and so has the VAT, which
stands between 9 and 19 % in certain products and services. A special tax has
been introduced for expensive goods, such as houses or cars, and authorities
have also raised excises for sweet products. Fuel excises are also getting
higher while experts believe the new fiscal measures will translate into a
higher inflation rate and a local currency that depreciates against the Euro.
Romania’s budget deficit this year has been estimated at 5% of the GDP with an
economic growth of 3.4%. 7% of the country’s GDP has been earmarked for
investment.

GAZA Israel has pulled out its
tanks from some parts of the Gaza city announcing a new stage in its war
against the terrorist group Hamas. The new change in Israel’s tactics involves
the partial pull out of its troops from the Gaza Strip and an increased focus
on smaller-scale targeted operations. Israel says one of the key objectives is
the complete elimination of the Hamas threat and the release of the hostages
still kept by the famous terrorist group. According to Radio Romania
correspondent in Israel, the attempts to release the Israeli hostages, which
seemed to be compromised at a certain point, have these days been given a fresh
impetus thanks to the mediation efforts of Qatar and Egypt. The war in Gaza,
which broke out after the attack on Israel masterminded and conducted by the
terrorist group Hamas on October 7, when 12 hundred people were killed and 240
kidnapped, has so far caused the death of roughly 22 thousand Palestinians in
the Gaza Strip. At the same time, most of the region’s 2.3 million people
residents has been displaced.

(bill)

2 January 2024
January 1, 2024 UPDATE

SCHENGEN The EU Council voted unanimously in favour of Romania’s and
Bulgaria’s gradual accession to the passport-free Schengen Area, after Austria, the last member country opposing
the measure, lifted its veto. As of March 2024, air and maritime border checks
with these 2 countries will be abolished, with Austria, Bulgaria and Romania committing
to also agree on a deadline for ending land border checks.The decision also comprises measures to
tighten border checks and fight illegal migration, so that Romania and
Bulgaria will continue to receive substantial financial support and assistance
from FRONTEX. The European Council president Charles Michel, the head of the
European Commission Ursula von der Leyen, the head of the European Parliament Roberta
Metsola and the EU Commissioner for home affairs Ylva Johansson are some of the
EU leaders who have welcomed the decision.This
is an important first step, Romania’s president said in his turn, and added
that lifting land border checks as well remains a priority for Romania.

AIRLINE The Otopeni Henri
Coandă International Airport, the largest in Romania, has been prepared for
Schengen operation ever since 2011. According to the airport spokesman Valentin
Iordache, two-thirds of the airport passengers have flights to and from Schengen
member states. Meanwhile, the Romanian state-owned airline TAROM resumed
flights to and from Tel Aviv on January 1, after having suspended them in the
wake of the October 7 attacks by the Palestinian terror group Hamas.

PRICES The year 2024 begins with price
rises for fuels and foodstuffs as well as for some services. For traditional,
organic foodstuffs and for food products made in mountain regions, the VAT went
up from 5% to 9%. Excises are also raised for tobacco, alcohol and soft drinks
with high sugar content. Also, certain
micro-enterprises will have to pay higher taxes on turnover, with tax increases
also in place for banks, hotels and restaurants. Housing costs will also be higher, as the VAT in
the real estate sector goes up from 5% to 9% for units worth up to EUR 120,000.
Also as of January 1, meal and holiday vouchers are to be included in the total
incomes for which health insurance contributions are paid. Analysts predict
retail price increases will be substantial,
and expect consumers to turn to cheaper products, while producers will lower
the product weight in order to observe price caps.

POLICE Close to 24,000 interior ministry staff are on duty
during the 4-day New Year’s holiday, while road traffic is monitored by 360 radar
speed guns and DUI check teams. Also, around 5,000 fire-fighters are on duty
every day around the country, to provide emergency assistance if necessary. The
border police also took steps to enhance border monitoring and to streamline
vehicle and person transit at checkpoints. Meanwhile, the authorities announced
having seized over 100 tonnes of fireworks kits and opening more than 500 criminal
investigations in this respect, and have once again called on parents not to
buy firecrackers for their children as such materials may be extremely dangerous.

INVOICING Electronic invoicing is compulsory in Romania as of
January 1 for all B2B transactions. The system entails benefits particularly in
terms of curbing VAT frauds, the finance minister Marcel Boloş told a press
conference. He also said that those who will not use the e-Invoicing system may
receive sentences of 3 to 10 years in prison, if the new law on fighting
economic and financial crime passes the Constitutional Court review. The
authorities count on additional revenues of EUR 1 bln. Minister Boloş also said
that in December the national tax authority’s directorate for large taxpayers
secured a record-high total of EUR 3.2 bln in state budget revenues. On the
other hand, the government extended a cap on the price of compulsory motor
insurance policies, which will stay at the level in February 2023 until March 2024.
The Cabinet also passed a bill making insurance compulsory for electric bikes
and scooters as well. (AMP)

1 January 2024
Lower prices for basic food stuffs

Romania is one of the European countries which has this
year put a cap on some basic food stuffs. An emergency ordinance came into
effect on August 1st to enforce a temporary measure of fighting
price hikes in some farm and food products. The ordinance, which is valid for
three months, is focusing on capping prices in several food products such as
bread, milk, meat, vegetables, fruit with a view to boosting the population’s
purchasing power.

The discount, which had been previously discussed with
processors, distributors and traders, was initially envisaged for 14 products.
According to data released by the Ministry of Agriculture and Rural
Development, a survey on prices in supermarkets shows that significant price
cuts are registered in several products such as, bread, edible oil, potatoes,
cheese, maize, flour and sugar

Agriculture minister Florin Barbu has recently said the ordinance on capping the
trade markup will be extended. Barbu added that funding is presently available
for projects both in the field of processing and the producers’ energy
independence.

Food and farm products
in Romania have a VAT of 9%. Producers aren’t going to lose because the VAT on
production expenses is higher, as there is going to be compensation the
minister went on to say.

The Ministry’s project
points out to the government’s summer decision, which had a positive impact,
explaining why an expansion is needed in the upcoming cold season, with higher household
expenses and consumption during the winter holidays.

According to Prime
Minister Ciolacu, the cap on food prices contributed to bringing inflation
under 9% last month. The new ordinance should be endorsed by the end of this
month when the former provisions are going to expire.

Seven food categories
should be added on the list of those with a provisionally capped trade markup.

With the expanded period
of three months by the end of January 2024, of the 14 capped prices, other food
products will be added such as pound cake, tomato sauce, some types of light
sour cream, margarine and yeast. According to the authorities, the decision to
add more subsidized products to the list has been made jointly with processors
and retailers. Failure to comply with the provisions of the aforementioned
ordinance is considered offence and punishable with fines between 100 thousand
to 2 million RON.

(bill)

23 October 2023
Conclusions of the IMF mission in Romania

The recently adopted fiscal package is a step in the right direction but further adjustment is need, the International Monetary Fund (IMF) delegation that assessed, until Wednesday, the state of the Romanian economy said in a press release. IMF experts have forecast a 2.3% economic growth for Romania this year and a budget deficit of 6% of the GDP and recommended the Romanian authorities to implement additional reforms accounting for 2% of the GDP. To this end, key measures to be considered are the elimination of remaining exemptions, privileges and loopholes, further VAT streamlining, implementing the reformed property tax and using tax policy to promote the efficient use of energy and, more broadly, foster the transition to a carbon-neutral economy.

According to the international experts, the new tax package improves policy design in some areas. It broadens the tax base and improves revenues by limiting exemptions for workers in the agricultural, construction, food processing and IT sectors, and by limiting the number of goods subject to reduced VAT rates. The new fiscal package will improve public finances in 2024 and beyond by about 1 percent of GDP, resulting in a deficit of just above 5 percent of GDP, in 2024. However, fiscal deficits will need to fall below 3 percent of GDP, as agreed with the European Commission, to stabilize public debt over the medium term, help secure necessary market financing at lower interest rates, and support ongoing disbursement of EU funds. According to the IMF experts, increasing the predictability of expenditure with salaries and pensions is welcome, but the Governments decision to control the price of food products is not the right strategy to lower the prices.

Moreover, the head of the IMF mission, Jan Kees Martijn, warned that it could be challenging to implement fiscal consolidation and the next steps under the National Recovery and Resilience Plan (NRRP) during a year with multiple elections such as 2024. He also said that additional taxes for banks put increase the burden on companies and could impact their financial results.

Among the measures recommended by the IMF mission, is also improvement in administration and a good planning of fiscal policy, which should be communicated in a clear manner, so as to offer predictability to both companies and the population. Also needed is, according to the international experts, new investment and budget allocations to education and healthcare, to bring them to EU level.

On their last day in Bucharest, the IMF experts met with the Romanian PM Marcel Ciolacu. He said the IMF recommendations, which are similar to those of the World Bank and the European Commission are already taken into account. At present, the Government focuses on reducing budget spending and fighting tax evasion and the bill for which it took responsibility in Parliament creates the general framework for the fiscal reform the Government wants to conduct. Marcel Ciolacu estimates that Romania will have one of the biggest economic growth rates in the EU this year and that the measures taken will help the country overcome the difficult situation experienced lately. (EE)

5 October 2023
July 31, 2022

TAXATION On 1 August, some of the fiscal measures introduced
recently by the coalition government made up of the National Liberal Party,
Social Democratic Party and the Democratic Union of Ethnic Hungarians in
Romania take effect. On Monday the tobacco excise duty is to increase, as is
the tax on gambling gains. Changes are also operated as regards salaries in the
construction industry, agriculture and foodstuffs, where the ceiling for
certain tax rebates will be lowered. Further changes to the Fiscal Code will
take effect early next year. For example, in the hospitality industry VAT will
be raised from 5 to 9%, while the VAT for non-alcoholic beer and for sugary
drinks will be raised to 19%. Sales of houses bigger than 120 sq.m. or for prices
of over EUR 120,000 will also carry increased VAT. According
to government estimates, these changes will bring the state budget an
additional EUR 243 million this year and some EUR 2.1 billion in 2023.

FESTIVAL Medieval
Sighişoara Festival in central Romania comes to a close today with a
concert by the rock band Cargo and a spectacular fireworks show. Currently in
its 28th year, the festival recreated the medieval feel with the
help of the over 100 participating artists. Events included medieval music and
dance performances, theatre plays, animation, and arts and crafts workshops. The
festival was organized under the patronage of Her Majesty Margareta, custodian of the Crown of Romania. Sighişoara is the
only inhabited medieval citadel in south-eastern Europe.

MILITARY The world’s
strongest air assault force, the US 101st Airborne Division, started
its mission in Romania, following a decision in this respect taken at the
recent NATO summit in Madrid. PM Nicolae Ciucă Saturday took part in the
ceremony in which the US unit presented its colours at Mihail Kogălniceanu Airbase
57 and welcomed the presence of this force, which contributes to strengthening
NATO’s eastern flank. The Romanian official thanked the US troops deployed to
Romania for their effort and contribution to the country’s security. Civilians,
airport personnel and their families then watched an impressive demonstration
showcasing the firepower of the Romanian and US armed forces. Created in 1942 to free Europe from the Nazi
occupation, the US 101st Airborne Division has 2,400 troops
deployed in Romania, 4,700 in Europe and nearly 20,000 around the world. In one
night alone, it can mobilise a brigade of 4,000 troops and hundreds of military
vehicles, equipment and weapon systems, an assault force able to overwhelm any opponent.

CENSUS Sunday is the
last day of the official population and housing census in Romania, after
several extensions. According to the National Statistics Institute, over 90% of
the process had been completed by early this week. The purpose of the census is to
establish the number of people living on Romanian territory, as well as the
living standards in each locality. Based on the data collected, the
authorities will create public policies and earmark funding for each town or
village. At EU level, the number of people
living in Romania is a criterion in the distribution of EU funds. The census is
compulsory for all Romanian citizens.

COVID More than 4,000 new SARS-CoV-2 infections out of over 13,000
tests, as well as 13 COVID-related deaths were reported on Sunday in Romania, the
authorities announced. The number of COVID patients in hospitals is over 3,900,
of whom more than 260 are in intensive care. The authorities estimate that next
week Romania could see 10,000 new cases per day. Although spreading very
quickly, this variant of the virus causes less severe forms of the disease.

TENNIS
The Romanian tennis player Ana Bogdan (108 WTA) plays today against Caroline
Garcia of France (45 WTA), in the Warsaw WTA tournament finals. They only
played against each other once before, at Wimbledon
in 2017, when the French player won. On Saturday, Ana Bogdan, currently
at her first WTA final in her career, defeated Kateryna Baindl of Ukraine (190
WTA), 7-5, 7-5. (AMP)

31 July 2022
July 16, 2022 UPDATE

USR Catalin Drula was validated as president of the USR, the
center-right opposition of the Bucharest Parliament during a USR online
congress held on Saturday. A former
Transport Minister, Drula had been elected by the members of his political
group during an online poll held recently where he mustered 71% of the total
number of votes. ‘It is a mandate I asked my colleagues for unity, stability,
coherence and efficiency and this is exactly what I am going to deliver’, the
new leader said adding that the ruling coalition is pushing Romania to the
brink of bankruptcy. ‘Inflation is through the roof, interest rates and taxes
are growing exponentially and poverty is rearing its ugly head in Romania’,
Drula went on to say.

SUPPORT ‘The Republic of Moldova doesn’t have to be and won’t be
alone in its efforts to implement the reforms it needs’, Romania’s Foreign
Minister Bogdan Aurescu said on Friday at the end of the second edition of the
Ministerial Conference of the Support Platform for the Republic of Moldova.
According to the head of the Romanian diplomacy this platform is ‘a permanent
instrument’ and is useful for Chisinau’s efforts to join the European Union.
Financial assistance pledges of up to 600 million euros were issued during the
conference for the support of this ex-soviet republic with a Romanian-speaking
majority. The event in Bucharest brought together delegations from 33
countries, members of the EU, G7, the European Free Trade Association,
international bodies, financial institutions and UN agencies. German Foreign
Minister Annalena Baerbock announced a financial assistance package for this
state of up to 77 million euros. On the sidelines of the conference Minister
Aurescu held talks with the OSCE Secretary General, Helga Schmid on the
security crises triggered by the Russian aggression against Ukraine.

WEATHER Britain is bracing up for a hot weekend
with very high temperatures. A national emergency has been declared after a red
extreme heat warning was issued for a first time. Temperatures are expected to
hit 40 degrees Celsius and hot weather warnings have been issued in France as
well. In only three days in Spain the heatwave caused 84 deaths mostly among
the elderly. Weathermen have cautioned that temperatures will remain high for
another 10 days.

GREECE A second contingent of 28
Romanian firefighters has left for Greece to replace their colleagues who in
the past two weeks have assisted the local authorities in monitoring and
extinguishing forest fires in areas north of Athens. Several fire engines, a
tanker as well as command and control vehicles have been deployed to the
affected areas. In the past 15 days, firefighters from Romania have
participated in various missions in the regions of Schimatari and Porto
Germeno. Last year Romania also helped Greece in its fight against devastating
forest fires.

WAR Ukraine has accused the Russian army of
using the platform of the nuclear power plant they occupied in Zaporozhe to
launch attacks in the southern region of Nikopol, an industrial area on the
Dnieper River. Ukraine has lashed out at the International Atomic Energy Agency
for not putting enough pressure on Moscow to pull out its troops from the
plant. According to Ukraine’s security service, on Friday night, the Ukrainian
army managed to bring down two Russian warplanes. The Russians shelled the city
of Kramatorsk in Donbas while in Donetsk, several Russian rockets have
destroyed the railway infrastructure and also hit civilian targets. The
anti-aircraft defence system of Ukrainian capital Kyiv on Friday managed to
shoot down a Russian missile and in Mykolaiv an Orlan-10 Russian drone has been
shot down by the Ukrainian forces. Ukrainian president Volodymyr Zelensky has
appointed a fresh regional government in Cernauti, close to the NATO border.

COVID-19 Romanian authorities on Saturday have reported 3,718 new
SARS-CoV-2 infections. 103 patients are being treated in ICUs and 7 related
fatalities have been registered. Since the beginning of the pandemic in
Romania, authorities have reported 65,800 related fatalities.

AMENDMENTS The government in Bucharest on
Friday endorsed the final amendments to tax legislation. Some changes are set
to come into effect on August 1, while others on January 1 next year. After
consultations with social partners, with employers’ associations, trade unions,
and local elected representatives, the Finance Ministry made several changes to
the initial bill. They accepted the proposal by hospitality industry employers
for companies to choose between specific taxes and tax on profits. According to
the changes, VAT would go up from 5 to 9% for restaurants, hotels, and catering
firms, while VAT for soft drinks would go up from 9 to 19%. Starting on August
1, tax incentives in construction and the food industry are granted for
salaries of up to 10,000 lei, about 2,000 Euro, and not up to 30,000 lei, about
6,000 Euro, as it is at present. Also next month, excises will go up for
alcohol and tobacco products. The tax on dividends goes up from 5 to 8 percent.
At the same time, people with salaries of up to 4,550 lei, about 900 Euro,
young people below 26, and people providing child care would get deductions.

(bill)

16 July 2022
July 15, 2022 UPDATE

CONFERENCE The
Republic of Moldova doesn’t have to be and won’t be alone in its efforts to
implement the reforms it needs, Romania’s Foreign Minister Bogdan Aurescu said
on Friday at the end of the second edition of the Ministerial Conference of the
Support Platform for the Republic of Moldova. According to the head of the
Romanian diplomacy this platform is ‘a permanent instrument’ and is useful for
Chisinau’s efforts to join the European Union. Financial assistance pledges of
up to 600 million euros have been issued during the conference for the support
of this ex-soviet republic with a Romanian-speaking majority. The event in
Bucharest brought together delegations from 33 countries, members of the EU,
G7, the European Free Trade Association, international bodies, financial
institutions and UN agencies. German Foreign Minister Annalena Baerbock has
announced a financial assistance package for this state of up to 77 million
euros. ‘It is important to know that we are not alone and that we can count on
you. Moldova is a small country and the magnitude of the events are beyond its
capabilities to cope with them’ Moldovan president Maia Sandu said.

ORDINANCE On Friday, the government in Bucharest
passed the final amendments to tax legislation. Some changes are set to come
into effect on August 1, while others on January 1 next year. After
consultations with social partners, with employers’ associations, trade unions,
and local elected representatives, the Finance Ministry made several changes to
the initial bill. They accepted the proposal by hospitality industry employers
for companies to choose between specific taxes and tax on profits. According to
the changes, VAT would go up from 5 to 9% for restaurants, hotels, and catering
firms, while VAT for soft drinks would go up from 9 to 19%. Starting on August
1, tax incentives in construction and the food industry are granted for
salaries of up to 10,000 lei, about 2,000 Euro, and not up to 30,000 lei, about
6,000 Euro, as it is at present. Also next month, excises will go up for
alcohol and tobacco products. The tax on dividends goes up from 5 to 8 percent.
At the same time, people with salaries of up to 4,550 lei, about 900 Euro,
young people below 26, and people providing child care would get deductions.

COVID Over 4,100 new Covid-19
infections have been reported in the past 24 hours in Romania. Most of the
cases are in Bucharest and its surroundings. 1,700 people are being treated in
hospitals out of whom 101 in ICU. 3 related fatalities have been reported in
the past 24 hours. 65,805 fatalities have been registered in Romania since the
beginning of the pandemic.

FIREFIGHTERS A second contingent of 28
Romanian firefighters has left for Greece to replace their colleagues who in
the past two weeks have assisted the local authorities in monitoring and
extinguishing forest fires in areas north of Athens. Several fire engines, a
tanker as well as command and control vehicles have been deployed to the
affected areas. In the past 15 days, firefighters from Romania have
participated in various missions in the regions of Schimatari and Porto
Germeno. Last year Romania also helped Greece in its fight against devastating
forest fires.

(bill)

15 July 2022
Measures to subsidize fuel prices

The government
in Bucharest on Thursday passed a bill for 0.5 RON subsidies
from the budget and fuel suppliers per liter of fuel. The decision was made for
citizens and companies to pay less on fuel, given the latest price spikes in
this commodity. The measure is valid
for the next three months and at the end of this period, the government is
expected to analyze a new set of measures if need be.

The government admits however that the
concrete implementation of the bill might be delayed for a while until suppliers
have updated their fiscal procedures. Moreover, the measure isn’t compulsory,
as fuel suppliers can choose whether to cut prices by 0.25% or not. However,
the Romanian Minister of the Economy, Virgil Popescu has given assurances that
the big chains of suppliers will apply the measure.

At the same time, authorities have pledged to monitor
fuel price evolution in the months of July, August and September and to sanction
any new hike under the ordinance of combating speculation. On the other hand, according
to state secretary with the Finance Ministry, Mihai Diaconu, the measure to
subsidize fuel will not increase the budget deficit.

According
to our estimates, the calculated impact of the 0.25% subsidy will be offset by
the fact that swollen prices would have dampened consumption. Lower consumption
would mean lower excise returns, and in principle we believe these could be
offset. The measure will boost the economy Diaconu went on to say.

He added that according to the Finance Ministry estimates,
state expenses will stay around 800 million lei, which will be added to the
other 800 million lei the suppliers aren’t going to pay as they will be offset
by their taxes and duties. The impact would have been bigger had the prices
gone higher, says Diaconu explaining the Ministry sought to find a simplified
mechanism to offset these subsidies granted to enterprises.

Within 15 days since the endorsement of the ordinance, through
an order by the ANAF president, fuel suppliers will be made available a model
of application. Then the subsidy will be applied according to their fiscal
duties, the VAT, corporate tax, etc.
We estimate that the offset will be done on the VAT side, Diaconu added.

(bill)

1 July 2022
Lower VAT rates for the Romanian tourism industry

Described by foreign websites as one of Europe’s most mysterious and beautiful countries, Romania is a highly recommended tourist destination. The Italian daily paper Corriere della Sera writes that Romania offers excellent food at small prices and boasts beautiful places where tourists can enjoy special experiences, from Transylvania’s castles to the Turda Salt mine, where a panoramic lift takes you 14 floors under the surface.

Apart from Bucharest, which is famous for the Palace of Parliament and its nightlife, some of the most often mentioned tourist attractions include Peleş Castle, the former summer residence of the Romanian kings or Bran Castle, which attracts an increasingly larger number of tourists every year, mostly because its name has been linked to Bram Stoker’s novel, Dracula. The Sighisoara medieval citadel, Decebalus’ sculpture at Cazanele Dunarii (Danube’s Cauldrons), the fortified evangelical church in Biertan, Sibiu County, the Orthodox monasteries in Moldavia, the Transfăgărăşan high road and Maramureş are other attractions highly appreciated by those who choose to visit Romania.

The number of foreign tourists is growing and this upward trend might gain ground following the line authorities’ decision to cut the VAT rate on tourist services from 9 to 5%, as of November 1. The economic measure adopted by the government to take effect in early November is meant to boost tourism and reduce tax evasion. VAT rates will be cut for the hospitability industry, including some collateral sectors, for instance renting plots of land for camping sites.

Restaurant and catering services, including beer sales, with the exception of alcoholic drinks, will benefit from the same VAT cut. All activities related to the leisure industry, including access to amusement parks, as well as other facilities to practice sports, such as fitness rooms, will benefit from the same cut. The VAT rate is currently standing at 19% in this sector.

Thermal and mineral water royalties in the spa sector will also be eliminated, and consequently, of all sectors of the economy, the tourism industry will benefit from the lowest VAT rate as of November 1. Although the bill does not refer to intermediary travel package services, but to the direct accommodation in a hotel we believe that holidays in Romania will be cheaper, says the President of the Employers’ Organisation of Romanian Hotels and Restaurants, Dragoş Petrescu. In an interview on Radio Romania, the first vice-president of the National Association of Travel Agencies, Alin Burcea, is however sceptical about the fact that the Romanians will enjoy cheaper holiday packages in the country, but he says the measure will certainly produce effects in the effort to contain tax evasion.

29 October 2018
October 31, 2017 UPDATE

Developping(23.25 Romania’s time): SECURITY ALERT IN NEW YORK: 8 people confirmed dead, more than a dozen injured

Eight people have
been killed in New York after the driver of a truck rammed into people on a cycle
path in Lower Manhattan. The driver made a statement when exiting the truck, thus prompting the US police to call his action an act of terror.

The 29 year old suspect has been shot in the abdomen and is now in hospital, the NY autorities told a press conference.

New York Mayor: The FBI is now leading the investigation, jointly with
NYPD.

The act was carried out by a lone wolf

RADIO ROMANIA – The Romanian Radio Broadcasting Corporation celebrates on Wednesday 89 years of operation, its first broadcast being aired on November 1, 1928. An information, education and entertainment medium, the public radio broadcaster addresses the Romanian society as a whole, all generations and all tastes. Adding to the nation-wide “News and Current Affairs, “Culture, “Music and “Village Antenna channels are regional and local stations and the online children and youth stations. Radio Romania first started to broadcast programmes abroad in the 1930s. At present, Radio Romania International has programmes in 11 foreign languages, in Romanian and the Aromanian dialect.

CONFERENCE – Over 600 people will attend on Wednesday and Thursday in Bucharest a conference of Francophone women on the role of women in creation, innovation, entrepreneurship, economic growth and development. Officials from 48 Francophone countries will discuss the rights and access of women to the labour market and their contribution to innovation and entrepreneurship. The forum is also intended to establish a network of Francophone women entrepreneurs. The conclusions of the conference in Bucharest will be used in drafting a Francophone Gender Equality Strategy, which will be discussed in the forthcoming Summit of La Francophonie in 2018.

MOTION – The National Liberal Party, the Peoples Movement Party and the Save Romania Union in opposition Tuesday filed a simple motion in the Senate against Finance Minister Ionut Misa. The opposition criticizes the Governments fiscal measures, saying they will negatively impact the economy and all social classes. The Government wants to transfer the payment of social security contributions from employers to employees and to introduce the so-called “employment insurance tax for employers. Liberal leader Ludovic Orban said this new contribution will increase taxation. In another development on Tuesday, the Senate passed a draft law on adopting the Governments emergency decree on the spaced-out payment of VAT. The plenary session paid heed to a report of the Senates Budget and Finance Committee, which modified the text of the decree, stipulating the measure applies only for insolvent companies or any companies with outstanding VAT-related debts at the end of 2017. The draft law will be submitted to the Chamber of Deputies, the decision-making body.

DIGITIZATION – The future of Europe will be digital or “there wont be one, and Romania will hold the upper hand in this context due to its very active network of startups, European Commissioner for Economy and the Digital Society, Mariya Gabriel, said today in Bucharest. According to the EU official, Southeastern Europe will have a great impact on the development of this field. Mariya Gabriel is attending a conference hosted by Bucharest titled “Digital Romania International Forum – Startups in 4.0 Industries. The forum brings together leaders from the industry, entrepreneurs, investors, European decision-makers, authorities and academia with a view to finding solutions for Romania to contribute to and benefit from the digitization of the industry, the economy and society at EU level. According to a survey by the PwC audit and consultancy group, Romania has a very high development potential in the IT sector, despite ranking last in the Union in terms of digitization.

UKRAINE – Venice Commission experts are in Kiev to examine the tensions prompted by the adoption of the new education law in this country. Attending a meeting with ethnic minorities on Wednesday will also be a delegation of Romanian nationals from the region of Cernauti. According to minority representatives, the new education law severely restricts the minorities rights to education in their native language. Recently, representatives of the 500,000-strong Romanian community in Ukraine have referred the matter to the Venice Commission, demanding that the new education law be examined to check its compliance with Ukraines commitments before the Council of Europe to safeguard the rights of national minorities to education in their own languages. Bucharest has repeatedly criticized the law.

(translated by Ana-Maria Popescu, updated by Diana Vijeu)

31 October 2017
October 23, 2017 UPDATE

TENNIS The world’s number one tennis player, Romanian Simona Halep, on Monday secured a two-set win against WTA no.9, Caroline Garcia of France in the first game of the red group of the WTA Finals in Singapore. In the group’s second fixture, Danish Caroline Wozniacki has defeated Elina Svitolina of Ukraine, 6-2, 6-0. On Sunday, in the competition’s first day, Spanish Garbine Muguruza outperformed Jelena Ostapenko of Latvia, 6-3, 6-4, while Karolina Pliskova of the Czech Republic obtained a clear win, 6-2, 6-2, against US challenger Venus Williams. Simona has participated in the Singapore tournament four times, and played the finals at her first participation in 2014.

VAT Romania’s Finance Minister Ionut Misa on Monday participated in ‘the Government Hour’ hosted by the Parliament in Bucharest in order to give explanations on the implementation and collection of the Split VAT. He explained that with the introduction of the new system, taxpayers would be made equal through eliminating unfair competition and the advantages some may have by the inappropriate use of VAT money. The measure has already been implemented following a government emergency ordinance. Optional at present, the measure is to become compulsory for all companies beginning January 1st. The opposition liberals have called on the government to cancel the ordinance, which, they say, will upset the economic environment. The ruling coalition wants to amend the law, so that the spaced-out VAT payment can become compulsory only in the case of bad payers and insolvent companies. The Split VAT has also attracted a lot of heat from companies who say it will block the economy.

NOTIFICATION The Romanian Senate Speaker, Calin Popescu Tariceanu, on Monday notified the Constitutional Court over a possible conflict between the Executive and the Public Ministry on government decisions. The notification comes after an investigation, anti-corruption prosecutors launched against two former members of the present government, Sevil Shhaideh, former Deputy Prime Minister and Minister of Regional Development and Rovana Plumb, former European Funds Minister. The two government officials stepped down two weeks ago amid graft allegations. According to prosecutors, through government ordinances back in 2013, two state-owned Danube regions started being illegally administered by County Council of Teleorman, a county in southern Romania. At that time, Shhaideh was state secretary at the Regional Development Ministry and Plumb was Environment Minister.

VACCINATION The Senate in Bucharest on Monday passed the Vaccination Law, aimed at regulating people’s immunization for the prevention and spreading of contagious diseases. Under the law, vaccination becomes compulsory for children with the vaccines included in the National Vaccination Timetable and also for the entire population in special situations. The draft sent by the government, stipulated that the law would come into effect on January 1st 2018, but the Senate’s Health Committee has eliminated that provision. The project is to be submitted to the Chamber of Deputies for approval.

23 October 2017
April 3, 2017 UPDATE

MESSAGE – The Romanian Foreign Ministry conveyed a message of condolences to the families of the people killed in the blast on the St. Petersburg metro on Monday. The message was posted on the Ministry’s Twitter page. An explosion tore through a train as it was travelling between two stations in Russias second-biggest city, killing over ten people and injuring dozens more. A second device was found and defused at another station. No group has so far claimed responsibility for the attack.

MEMORANDUM – The Republic of Moldodva has signed a controversial memorandum of cooperation with the Russia-led Eurasian Economic Union. Moldova’s President, the pro-Russian Igor Dodon, signed the document on behalf of his country, saying it was the first step towards strengthening economic cooperation with the East. Dodon also said the memorandum did not contradict previous accords signed by his country, such as the Association Agreement with the EU. On the other hand, Moldova’s PM, Pavel Filip, has recently said that the memorandum will have no legal value as it lacks the approval of the Foreign Ministry and has not been ratified by Parliament.

MINISTERS — Two new ministers, namely the Environment Minister and the Minister for the Liaison with Parliament, were sworn in on Monday. The Alliance of Liberals and Democrats, a junior coalition partner in the Government led by Social-Democrat Sorin Grindeanu, nominated Gratiela Gavrilescu for the position of Environment Minister and Deputy Prime Minister. Replacing Gavrilescu as the new Minister for Liaison with Parliament will be Viorel Ilie, also nominated by the Liberals and Democrats. One week ago the party leadership decided to withdraw political support for the party co-president, Daniel Constantin, the Deputy Prime Minister and Minister of the Environment, amidst tensions between him and the other co-president, Senate Speaker Calin Popescu-Tarcieanu.

BORDER POLICE — The Romanian border police announced it would strengthen border control checks starting Friday. The documents of all people crossing the border will be cross-checked in national and international databases, therefore the authorities expect waiting times to spike. According to a press release, on April 7 the authorities will implement an amendment brought to the Schengen Borders Code, adopted by the European Parliament and the European Council, aimed at improving the security of the EU and its citizens. The Romanian border police says all measures have been taken to reduce waiting times and ensure functional border checks and is making efforts to ensure a balance between the security of citizens and border crossing flows.

ELECTION IN SERBIA — The acting Prime Minister Aleksandar Vucic on Sunday won the presidential election in Serbia. According to the Serbian Election Commission, Vucic grabbed over 55% of the vote, while the runner-up, current Ombudsman Sasa Jankovic, won only 15% of the vote. Seen as the new strongman of Serbian politics, Vucic is an ultranationalist turned pro-European Democrat. He pledged to support Serbia’s efforts to join the EU as well as maintain privileged relations with Russia. EU Commissioner for Enlargement, Johannes Hahn, has congratulated the president elect, whom he called a partner and a friend.

MILITARY DRILL — Three Romanian warships carrying 200 military onboard and three Turkish warships are taking part in the “Starfish” bilateral military exercise. The exercise is aimed at increasing interoperability between Romanian and Turkish naval forces. While docking in the port of Constanta, the Turkish military will also bring floral tributes to the Cemetery of Turkish War Heroes in Slobozia, southern Romania, and will visit the Museum of the Romanian Navy.

PROTESTS — The Moscow Police on Sunday arrested 30 people taking part in an anticorruption rally, the latest after last week’s large-scale protests. Radio Romania’s correspondent reports that opposition leader Aleksei Navalny, the organizer of last week’s protests, who was already placed under 15-day arrest for resisting arrest, says he is in no way connected to the latest protest. According to the Police, a thousand people protested on Sunday as compared to the nearly 100,000 people who protested on March 26. On Friday, several dozen Romanians protested before the Russian Embassy building in Bucharest, as a token of solidarity with the anticorruption protests in Russia.

(Translated by Elena Enache)

3 April 2017
April 2, 2017 UPDATE

DECREES – Romanian President Klaus Iohannis will sign on Monday the decrees regarding the appointment of two new ministers. Gratiela Gavrilescu will be the new Deputy Prime Minister and Environment Minister, at the proposal of the Alliance of Liberals and Democrats (ALDE), who also nominated Viorel Ilie as Minister for the Relation with Parliament. We remind you that a week ago, the ALDE leadership decided to withdraw political support for the party’s co-president, Daniel Constantin, who was deputy PM and Environment Minister, against the background of misunderstandings between Constantin and the other ALDE co-president, Senate Speaker Calin Popescu Tariceanu.

VAT – The Romanian Minister of Tourism, Mircea Titus Dobre, has announced he will submit on Monday the necessary documents to the Finance Ministry so that the VAT for travel agencies be decreased to 9%. Minister Dobre has said he believes this is a way of boosting this sector and a measure likely to trigger a decrease in holiday packages. He has pointed out, however, that slashing the VAT will take time, given that the approval of the European Commission is also required.

NATO – The Romanian Foreign Ministry hailed the celebration of the NATO Day on Sunday and said that Romania continues to be a beneficiary of the measures taken by the Alliance but also an important contributor to it, by taking part directly in the handling of threats coming from the eastern and southern flanks. On NATO Day, the Romanian Defense Ministry opened its gates to visitors. Also, there was a military ceremony dedicated to Romania’s accession to NATO, an outdoor exhibition of military equipment, as well as film screenings. Romania officially joined the North Atlantic Treaty Organisation (NATO) on March 29, 2004. The country celebrates NATO Day every year on the first Sunday of April.

GENEVA — Romanian won 34 gold medals, 8 silver medals and 10 special prizes at the International Exhibition of Inventions in Geneva, Switzerland. Romania also got 17 prizes awarded by foreign delegations. Romania participated at this year’s edition with 40 inventions funded by the state budget and 8 inventions financed from other sources. Over 2 thousand inventions were exhibited in Geneva this year.

HEALTH — Romanian doctors who want to return to Romania will enjoy the assistance of a National Centre for Human Resources, set up within the Health Ministry. The Bucharest authorities have decided to open this centre after they received signals from Romanian doctors working in Germany and Britain that they want to return home, encoraged by the recent salary increase in the Romanian health system. The Health Ministry is also considering measures lilely to stimulate doctors to work in rural areas.

INVESTIGATION — The controversial computer game Blue Whale will be analysed next week by the Control committee of the Romanian Inteligence Service (SRI), Liberal senator Cristian Chirtes has said. The Blue Whale game is believed to be encouraging people to kill themselves. It is believed that an administrator assigns ‘daily tasks’ to members, which they have to complete for 50 days. These tasks include self-harming, watching horror movies and waking up at unusual hours, but these gradually get more extreme. Several children and teenagers in Romania died or have been taken to hospital lately for trying to hold their breath, one of the tasks they received during the game. Romanian Police has recently initiated a prevention campaign, trying to raise awareness over the dangers that teenagers are exposed to in the online environment.

GAS PRICE — The liberalization of the purchase price of natural gas for the population came into force on April 1st, and the National Energy Regulatory Authority (ANRE) has already announced a 2% increase. Also as of April 1st, domestic consumers will be able to choose their provider of natural gas. The ANRE President Niculae Havrilet has told Radio Romania that the price liberalization for domestic consumers, which will bring more competitors into the market, will eventually lead to a drop in the price of natural gas.

(Translated by Elena Enache)

2 April 2017
A Central Bank report on inflation

The National Bank of Romania has revised upward its inflation rate forecast for the end of this year from 1.1% to 1.4%, anticipating an inflation rate at the end of 2017 of 3.4%, which is close to the upper limit for the period targeted by the national bank, namely 1.5 % and 3.5%.

The periodical report on inflation presented by the governor of the National Bank of Romania, Mugur Isarescu, reconfirms the prospects of inflation going into a negative area in the first five months of 2016, as a result of the cuts in the VAT and other indirect taxes.

According to governor Isarescu, inflation will subsequently stabilize at positive levels, once the effects of the VAT reduction for food stuffs and services fade out and also against the background of a relaxed fiscal policy and of rising unitary costs for salaries. The governor points out to the fact that the monthly fluctuations in consumer prices have become positive again and that there are many prices still on the rise.

Mugur Isarescu: “With the exception of June, when food prices went down thanks to the VAT cut, before that time but also until December and probably in the future as well, in Romania prices are still increasing rather than dropping. Hence the population’s perception, which should not be blamed, that prices are still on the rise.”

This upward trend has been caused by several factors, such as the less- significant- than-expected cut in fuel prices, price hikes for farming raw products, given the low harvests across the EU, the latest depreciation of the national currency as well as the atypical price hike for tobacco products.

According to the Central Bank, domestic uncertainties mainly concern the rising inflation, being related mainly to the fact that a budget has been approved for 2016 with a deficit close to the 3% ceiling, that pressure continues to be put for rising budget expenses and that the income policy is on a staunch rising trend. Furthermore in the opinion of the central bank governor, the recently approved pay rises aren’t correlated with improved productivity.

Mugur Isarescu: “Productivity of work in industry does not support this wage dynamics, which is necessary, or structural reforms meant to bring about an increased productivity of work or the containment of these pay rises so that this correlation may not break at a certain time.”

Isarescu has also said that a significant rise in consumption has been noticed of late, particularly in terms of food stuffs, as well as an increase in loaning thanks to low interest rates and the Romanians’ shift towards loans in the local currency.

External influences seem to point out towards balanced risks, but that doesn’t mean that the Central Bank is not taking into account major uncertainties currently hindering international developments, and which are suggesting a very difficult year 2016.

10 February 2016