Tourism units with labeled "ecological" to be exempt from taxes for a period of ten years

Cristina Mihalaşcu

Companies that have up to 40 rooms available for accommodation will be exempt from the payment of revenue or profit tax for a period of ten years, and will have their VAT quota lowered by as much as 9%, according to a law intended to stimulate the introduction of the "ecological" label, initiated by Deputies Lucian Varga and Cristian Burlacu. "The draft law does not revise the European Directive that was added to the Romanian legislation four years ago, but rather it deals with the implementation of the former, namely the awarding of some facilities by the Government, which include tax exemption for reinvested profit", deputy Cristian Burlacu said.

Mr. Burlacu insisted that these facilities are not incentives for tour operators, but rather they are taking into account the current economic problems, with their only purpose being to help as many companies as possible earn their ecological label.

In order to earn the green label, companies or individuals must fulfill three out of six requirements, which include using alternative energy (at least 15%), using ecological light bulbs (at least 50%) and promoting traditional Romanian products.

The law draft was sent to the Chamber of Deputies and is awaiting validation from the Administration and Industry Commissions. From there, the draft will go to the Senate and if it gets the required number of votes, it will be sent to the Chamber of Deputies for the final vote. If the draft gets adopted, tour operators will be able to earn their ecology label starting in 2010.