An overview of the fiscal and utility costs of 2013 sees power and gas eating up more of Romanians’ incomes as well as an increase in various taxes and duties, according to Mediafax news agency.

Beginning with January 1, 2013, the cost of power goes up by 10 percent, which, based on a monthly invoice of EUR 8.8 (RON 40) for 100 KWh, translates into an additional  EUR 0.8 (RON 4) per home. Gas invoices for domestic consumers are also scheduled for a 10 percent increase next year, with 8 percent applicable as of July 1, and the remaining 2 percent as of October 1, 2013.

Excise duties on alcohol, processed tobacco and coffee will be higher next year due to a 5.2 percent increase in the exchange rate on which they will be based. The Central European Bank announced on October 1, 2012 that the prevailing rate for 2013 will be 4.5223 RON/EUR. The excise duty on cigarettes might also increase from July 2013 from EUR 79.19 to EUR 81.78 per 1,000 cigarettes.

Diesel fuels will also bear higher excise duties next year, as the Government has approved an increase in their value from EUR 374 per ton to EUR 391 per ton.

The duty payable on the first sale of a car will be re-introduced as of January 1. A first proposal for the application of this duty dates back to Emil Boc’s mandate, at the end of 2011. Heavy protests caused it to be postponed for one year so as to allow old car owners to sell their vehicles without the burden to the state.

In 2013, Romanians will be obliged to get their Health Insurance Electronic Card (CEAS) based on documents sent to the National Health Insurance Company by all family doctors, with card dispatch costs to be paid by the Ministry of Health.

In 2013, owners of small businesses - with turnovers under EUR 0.5 million (RON 2.25 million)- will have to collect VAT at the time they deliver their products or services, but no later than 90 days as of the issuing of the corresponding invoices.

Taxpayers will have to wait until January for the good or bad news on the level of local taxation. Local authorities will set taxes after applying the Romanian Government’s three year inflation adjustment level of 16.5 percent. Each local authority is free to increase or decrease the level of adjusted taxes by 20 percent.

Good prospects for those who plan on buying a house next year, with an additional EUR 200 million provided for guarantees on First House loans granted up to mid 2013.

Ioana Jelea, ioana.jelea@romania-insider.com