STARTING JANUARY 2010 Excises to be calculated at an average exchange 4.1981 lei/Euro

The leu/Euro exchange rate used for the calculation of excises owed to the state budget for the year 2010 has been set at 4.1981 lei/Euro, 12% higher compared to the one used in 2009, according to yesterday"s exchange rate set by the NBR.

In 2009, the exchange rate used for calculating excises was 3.7364 lei.

According to the Tax Code, "the amount in lei of excises, of the special tax for cars/vehicles, set in Euros will be calculated by converting the amounts denominated in Euros at the exchange rate set by the NBR on the first day of the month of October of the previous year. This exchange rate will be used for the entire year of 2010".

Since the beginning of September, the exchange rate fluctuated between 4.23 - 4.24 lei/Euro, to reach 4.27 4.27 lei/euro on September, the highest level since spring 2009.

In spite of all this, over the course of one week, the leu rose from 4.27 lei/Euro to 4.19 lei/Euro.

Thus, according to the exchange rate of 4.1981 lei/Euro set for calculating the excises for next year, electricity bills will grow, as will gas. Car registration will also become more expensive, as the pollution tax will be calculated using the new exchange rate as well.

• Luxury goods to be exempted

According to the draft decree for the revision of the Tax Code, published on the website of the Ministry of Finance, Romania will eliminate excises for luxury goods, such as furs, jewelry, cosmetics, crystals, fragrances, hunting firearms or yachts, as this was required to avoid the initiation of an infringement procedure by the European commission due to Romania levying excises calculated as a percentage of the sale price.

Hunting weapons have the largest excise rate (100%), whereas furs have a 45% excise. Excises for large yachts amount to 50%, whereas in the case of perfumes, the excise is 35% of the sale price.

State budget revenues in the first semester of the year amounted to 41 billion lei, of which excises accounted for 6.8 billion lei, (or 17%), according to data from the National Tax Administration (ANAF).