COTAR demands simultaneous reduction of excise duties and VAT on fuels

The Confederation of Authorized Operators and Transporters of Romania (COTAR) welcomes the decision of the Romanian Government to take concrete measures to reduce the price of fuels.

Transporters’ representatives claim that the measures must be taken „as soon as possible” and for a „sufficiently long” period.

„We remind Prime Minister Ilie Bolojan that these measures must be taken as soon as possible and for a sufficiently long period of time, so as not to plunge Romania into an economic crisis worse than the one in 2009-2010. The increase in fuel prices does not only mean an increase in costs for transporters, but also an increase in the price of all products and services, a decrease in the standard of living, an increase in crime, chain bankruptcies and a wave of unemployment, and all of this will never bring more money to the state budget, but only economic and social destruction. The Prime Minister should take into account the calculations made by all economists and the simple solution that was given to the Government: only by reducing excise duties and VAT on fuel can this crisis be stopped,” said Vasile Ştefănescu, president of COTAR.

According to a press release from the confederation, the prime minister explained that prices increased from approximately 8 lei to 10.3 – 10.4 lei, by approximately 30%, a phenomenon that could not be stopped, being linked to the evolution of foreign markets.

„We assume that Prime Minister Ilie Bolojan is not sufficiently well informed about the current fuel price situation. A simple calculation shows that diesel would cost 4.6 lei, but the increased excise tax from January 1 is added, to which is added the VAT increased to 21% and the road tax, so that the current price results, which has exceeded 10 lei per liter, in some gas stations, a price from which the state collects 55%. It is not related to foreign markets or imports, but to the fact that the state collects more than half of the cost of a liter of diesel, at each refueling”, the press release states.

Reducing excise duties and VAT simultaneously are the only solutions to avoid a major economic crisis, say transporters.

The Romanian government is analyzing ways to reduce excise duties on diesel and is expected to make an official decision soon. „Reducing excise duties on diesel, in one way or another, is being analyzed. In these hours, the Ministry of Finance and the Ministry of Energy are working and will come up with a solution,” Prime Minister Ilie Bolojan said.