Romania Mulls Reintroducing Excises On Luxury Products, Risks EC Sanctions

The Government drew up a draft ordinance decree to fight tax evasion whereby the country will reintroduce excises on luxury products. The draft act will be approved in a Government meeting next week.

Luxury products subject to excises are furs, except for rabbit, sheep, goat, (with an excise of 45%), crystal products (15%), gold/platinum jewels except for wedding rings (10%), perfumes (35%), guns and hunting weapons, other than for military use (100%), yachts and other sport vessels (5% to 15%).

Firms, family associations and authorized individuals that produce or purchase luxury products from the European Union or elsewhere will pay excises.

In October 2009, the Government decided that, starting 2010, excises on luxury products, including yachts or other vessels, will be eliminated to avoid EC infringement procedures against Romania for applying excises set in percentage.