Romania Revises Windfall Taxation of Energy Firms

Romania will tax companies that both extract and refine crude oil at a special rate of 350 lei ($78.53) per ton of refined crude, under revised windfall taxation rules adopted Wednesday by Parliament.

The newly introduced special rate is meant to close a loophole that might have allowed OMV Petrom S.A., the largest energy company in southeastern Europe, to avoid windfall taxation.

• Romania decreed late last year a 60% “solidarity contribution” on excess profits of companies generating at least 75% of their turnover from extraction of crude, natural gas or coal, and on refining businesses.
• Controversy ensued ...