excises

Romania’s Government plans to reintroduce excises on yachts, perfumes, hunting weapons, jewelry and other luxury products starting 2010, and the country risks to be sanctioned by the European Commission, as it breaches certain European norms.

Romania’s railway companies may be exempted from the payment of fuel excise, in view of ensuring a balance on the transport market, through re-launching the railway transport, according to the European Union requirements, Ministry of Transport proposed in a draft law.

Romanian government on Wednesday decided to hike tobacco excises by EUR7/1000 cigarettes to EUR57/1000 cigarettes as of April 1.

Romanian cigarette producers were not consulted on the EUR14 increase of tobacco excise duty this year, and the implementation of this measure would trigger 30%-40% higher costs and would encourage smuggling, according to Japan Tobacco International (JTI).

Cigarette maker Japan Tobacco International (JTI) said the Romanian tobacco excise calendar has already been rushed with the introduction of the vice tax, and an early increase of the excise would spell 50% increases in cigarette prices and would put contraband in control of 30% of the market.

Romania will lower excise duties for diesel fuel used in agriculture by 0.65 lei (EUR1=RON3.5952) per liter, for a quantity of 48 liters per hectare, agriculture minister Dacian Ciolos said Thursday.