“Consumption is dropping but there is still considerable demand for investments and newer and better technology, so cost pressures are pretty intense. Moreover, there is also the pressure of end consumer prices. In these circumstances, new taxes would make investment decisions considerably more complicated,” Zmelik told MEDIAFAX.
The government introduced a tax on special constructions, such as utility poles, at the beginning of the year. The government estimates the tax will bring in RON1.5 billion this year.
Adrian Borotea, member of the CEZ Romania board of directors, said in May Romania has too many taxes, which authorities increasing too frequently. Borotea added at the time the special construction tax would cost CEZ Romania an additional RON70- 80 million this year.
Prime Minster Victor Ponta said last week the tax on special constructions will be lowered from 1.5% to 1% of the construction value and the tax revenues will be placed at the disposal of local authorities instead of added to the state budget.
Energy consumption dropped 6% on the year in 2013 and declined 2% on the year in the first half of 2014.