Electricity prices in Romania will increase by 10% starting January 1, 2013 due to higher costs for power producers and increased state aid granted to renewable energy producers. Energy watchdog ANRE vice-president Emil Calota said recently the average monthly electricity bill of 40 lei (EUR8.9) currently, for consumption of 100 Kilowatts, will increase by RON4 starting January 1.
Tobacco, alcohol and coffee excises will also rise next year, as they will be computed using an exchange rate of 4.5223 lei to the euro, 5.2% higher from 4.3001 lei/euro in 2012.
The total duty on cigarettes might be hiked from EUR79.19 per 1,000 units, to EUR81.78 per 1,000 units in July 2013, which would lead to new price increases.
Moreover, Romania has pledged to deregulate gas and electricity prices and align them to European levels by 2018. Price deregulation is set to unfold in eight separate rounds for corporate clients, between January 2013 and October 2014.
In the case of household consumers, the deregulation scheme will include 10 stages, between July 2013 and December 2017. Next year, natural gas prices for households will increase by 10% (8% in July and 2% in October), according to ANRE.
The car pollution tax, whose payment was suspended for one year at the beginning of 2012, will be mandatory starting January 1. The government is expected to further analyze the matter and take a decision in its first meeting next year.
The country’s new value added tax payment system, making the VAT due on invoice payment, will take effect on January 1, 2013. Only taxpayers with an annual turnover below 2.25 million lei (EUR500,000) will be required to use this system.
According to a decision approved by the government recently, the state supported “First Home” program will continue next with the state guarantees that were not used in 2012. The document makes no mention of raising the guarantee ceiling.
A draft decision published on the Finance Ministry’s website previously stated the government would continue the “First Home” program in 2013, with additional guarantees of EUR200 million that should be exhausted by midyear.