The capping of energy prices was one of the main measures adopted in Romania, being felt by 63% of taxpayers interviewed in a new EY study as having a large or very large impact on their activity. A percentage of 21% said that this measure had a marginal effect (small and very small), and 16% said that they felt no effect of this measure.

If the measure itself was, in theory, beneficial for most companies, 75% of the respondents say that they did not manage to recover the sums from the state budget within a reasonable time, so that their cash flow was not affected, and only 25% they declared themselves satisfied with this process. As for the return intervals of the amounts in the taxpayers’ accounts, the study shows that almost half of the respondents (46%) recovered their money after more than 90 days, the rest being distributed almost equally over the other time intervals, as follows: until 30 days – 20%, up to 60 days – 18% and, respectively, up to 90 days – 16%. In addition, almost two-thirds of the interviewed companies (61%) stated that the cash flow deficit, caused by the delay in recovering the amounts from the state budget, was difficult to finance.

Capping energy prices was perceived as having a high and very high impact by around 63% of respondents. One of the disadvantages of these measures was the limitation of access to financing for energy suppliers, with 75% of them recovering late the amounts owed by the authorities.

Regarding the fiscal regime of price caps in the field of energy, it was felt by the majority of companies (over two thirds of those interviewed – 73%) as difficult to apply and non-transparent.

On the other hand, but in perfect correlation with the tax regime question, the tax treatment of profit tax, VAT and transfer pricing of these caps was unclear for more than 74% of respondents. In the same vein, regarding the purpose of these ceilings, adopted by the Romanian state in order to support the economy, almost 60% of the respondents believe that they have not achieved their purpose.

Considering the situation resulting from the answers regarding the tax regime and the difficulties in recovering the amounts, as well as other factors, approximately 67% of the respondents expect changes regarding the energy price ceiling measures and the contribution to the Energy Transition Fund (FTE). In regard to this, moreover, almost 80% of the respondents believe that the way of declaration and calculation is not easy at all.

“Broader consultations between the authorities and taxpayers are required, which could reduce the need for changes, if we consider that, currently, approximately 67% of respondents anticipate future changes to the current rules. Moreover, approximately 59% of respondents estimate that the current measures have not achieved their economic goal from the perspective of consumers, which reinforces the need for some resets of the current rules,” says Costin Manta, Partner, Indirect Taxes, EY Romania.

Being asked if, following the overtaxation in Romania, they will continue/increase investments in Romania, approximately half of the respondents answered affirmatively, saying that more elaborate solutions will be taken into account to apply in the strategy of purchasing the electricity necessary for the activity. The answer could be corroborated with the one regarding the possibility of lower electricity prices in the future. Almost two-thirds of those surveyed (60%) said they expect energy prices to drop in the near future.

“The fact that most of the interviewed companies said that they will continue their investments in Romania is a good sign for the Romanian economy, against the background of their optimism regarding the decrease in energy prices in the next period,” adds Costin Manta.

With the entry into force of European Regulation 1854/2022 on the additional 33% taxation of profits of companies operating in the crude oil, gas, coal and oil refining industry, three quarters of the companies surveyed (75%) said they expect to a chain increase in prices, while only 25% were more optimistic, predicting their moderation in 2023.