Press Review - September 25, 2018

09.25.2018 By Oana Gavrila

Romania Loses Over EUR6B Annually from Uncollected VAT

Romania lost EUR6.3 billion in uncollected VAT in 2016, according to calculations by PwC Romania based on a VAT gap study released by the European Commission.

Romania posted the highest VAT gap in the European Union in 2016, of 35.88%, according to the study.

It's concerning that the VAT gap grew in 2016 compared with 2015 in Romania, while most member states registered decreases.

Although Romania lowered its standard VAT rate in 2016 from 24% to 20%, non-payment increased, PwC Romania said in a press release Monday.

 

Leu Loses Ground Vs Euro

The Romanian leu lost ground to the euro on Monday, when the central bank calculated a midday reference rate of 4.6578 units to the euro.

The leu lost 0.04% compared with Friday's rate of 4.6559 lei to the euro.

The leu also depreciated compared with the US dollar, standing at 3.9575 lei to the US dollar Monday, 0.15% lower than Friday's rate of 3.9517 lei to the US dollar.

 

PM Dancila Appoints Toni Grebla Government Secretary General

Toni Grebla, a former Constitutional Court judge, was appointed government secretary general by order of prime minister Viorica Dancila.

The appointment order was published in Romania's Official Journal Monday.

Grebla replaces Andreea Lambru.

 

Senate Passes Offshore Gas Bill, Rejects President Re-Examination Request

Romania’s Senate passed again on Monday a bill regulating offshore gas exploitation in the Black Sea, in the form amended earlier in the day by a common energy and economic committee, following a re-examination request by President Klaus Iohannis.

The Senate decided with 81 votes for, nine against and 15 abstentions to pass the bill, which was sent back for re-examination by President Iohannis in August.

Romania’s Lower Chamber will hold a decisive vote on the bill in the following days.

One amendment brought to the bill within the common committee, proposed by Romania’s Tourism Ministry, stipulates that exploitation close to shore must not affect access to the Black Sea beaches.

Another amendment specifies that current oil exploitation will be regulated by the agreements existing at the date of the bill’s enactment.

The bill in question, which sets a progressive taxation system for gases extracted from the Black Sea and establishes that half of them should be returned to the Romanian Government, was passed by the Parliament at the beginning of July.

However, President Iohannis requested the bill’s re-examination in August, criticizing what he called a lack of predictability and stability in the form it was passed.