The average effective tax rate on the incomes of oil & gas producers in Romania increased from 13.9% at the end of 2013, to 15% at the end of 2014 and to 15.7% after the first half of 2015.

At a EU level, this rate dropped from 12.2% at the end of 2013 to 11.7% at the end of 2014, according to a Deloitte study commissioned by the Oil and Gas Employers Federation. The decrease at EU level was due to the drop in the oil price, but was also due to the laws adopted in some European countries to reduce the tax burden on oil & gas producers, in order to encourage investments.

As for Romania, the tax rate has increased, as the state continued to apply a tax of 60% on the additional revenues related to the liberalization of gas prices. The Government estimates that it will collect this year EUR 219 million from the tax on the producers’ additional revenues following the gas price liberalization.

editor@romania-insider.com