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Romania

Climate change taxation reforms and incentives in Romania

Table of contents
  1. Has your country ratified the Paris Agreement?
  2. Has your country introduced environmental taxes?
    1.  Energy taxes
    2.  Transport Taxes
    3.  Pollution taxes
    4.  Resources taxes
  3. Has your country introduced a carbon tax?
  4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment?
  5. Has your country recently announced tax reforms connected to climate change?
  6. Other comments
Romania

1. Has your country ratified the Paris Agreement?

Yes. Romania has ratified the Paris Agreement through Law no. 57/2017, which entered into force on 23 April 2017.

2. Has your country introduced environmental taxes?

 Yes.

2.1 Energy taxes

No, except for excise taxes applicable to fuels, liquefied petroleum gas, natural gas, coal and electricity. 

2.2 Transport Taxes

A vehicle tax is payable by motor vehicle owners. The level of the tax depends on the engine size of the vehicle.

2.3 Pollution taxes

Yes. Contributions to the environmental fund apply on release of air pollutants, solid waste, packaging, dangerous substances, wood, car tires, oils, batteries. 

2.4 Resources taxes

Fees apply on oil & gas extraction, water withdrawal, coal as well as extraction of other natural resources.

3. Has your country introduced a carbon tax?

No.

4. Does your country offer sustainability incentives (tax credits, subsidies or other business incentives) to encourage taxpayers to engage in behaviours and develop technologies that can impact positively the environment?

  • In case of hybrid vehicles, the vehicle tax is reduced by 50%.
  • The State subsidies a fixed amount for replacement of old vehicles with new ones. In case of acquisition of electric or hybrid vehicles, the amounts subsidized are higher.

5. Has your country recently announced tax reforms connected to climate change?

 “The strategic plan regarding climate change for 2016 – 2020” issued by the Government comprises a series of actions for development of ecological transportation: increased taxation of motor fuels, introducing a tax on air travelling.

6. Other comments

N/A

Authors

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Portrait ofRoxana Popel
Roxana Popel
Head of Tax, Romania
Bucharest