Companies extracting oil and gas in Romania will pay a new tax on the profits obtained from the extraction of oil and gas, in addition to royalties and the standard tax on profit of 16%, according to finance minister Viorel Stefan, reports local Mediafax.

The Government is currently working on a new royalty tax system for the oil and gas sector and the draft bill may be finalized by the end of June.

The new tax will be lower for the hydrocarbons extracted and used in Romania and higher for the oil and gas that goes to export, said the finance minister in an interview with local Mediafax.

Romanian Prime Minister Sorin Grindeanu met earlier this week with a delegation of ExxonMobil, one of the largest oil companies in the world, and OMV Petrom, the largest Romanian oil and gas company. He promised them that that his cabinet would support the development of the offshore oil and gas production.

editor@romania-insider.com