Only RON 200mln of the RON 700mln obtained from the additional taxation of energy companies will be used to protect vulnerable energy consumers

Government approved in Wednesday meeting the draft regulation on aid for vulnerable consumers, affected by the increase in gas prices to take place following market liberalization. Amounts necessary to increase social aids will be provided from the taxation as of February 1^st of energy producers for windfall incomes obtained by them due to price liberalization. According to Minister Delegate for Budget Liviu Voinea, the Government’s expense with the protection of vulnerable consumers will be this year around RON 200mln, in conditions in which from the additional taxation of energy companies around RON 700mln will be obtained. Asked what will happen with the difference of money, Liviu Voinea said that it would go to the consolidated state budget. We recall that from February 1^st a 60% tax applies to windfall incomes obtained by gas producers from price liberalization. According to government sources, the Romanian state could gain within one year over RON 1bn from the additional taxation of 60%. Moreover, the more the liberalization degree increases, the higher is the taxable income. Money should be used to protect vulnerable consumers. Basically, the Government’s expense with the protection of vulnerable consumers is much lower than what it gets from the taxation for this purpose of energy companies. Liviu Voinea claims that the maintenance of the current overcharge is justified even if this year not all the money obtained will be used to protect vulnerable consumers.