Sources: The SDP deferred discussions on the law of the Black Sea gas because it is much worse for Romania as compared to the promises made publicly by Liviu Dragnea

On Tuesday, deputy Iulian Iancu (SDP) – head of the Commission for Industries, postponed by a week the debates on the offshore law, which is crucial for the Black Sea gas extraction. Parliamentary sources told G4Media.ro that the deferral came after a discussion between Iulian Iancu and Liviu Dragnea, in the aftermath of which it emerged that the form of the law voted by the Senate, with amendments filed by the SDP, does not respect the promises made publicly by Liviu Dragnea.

More specifically, the law is far from reaching the targets repeatedly announced by Liviu Dragnea. The problem arises in deducting investment from corporate tax, governed by an amendment tabled last week in the Senate by the chair of the Energy Commission.

The SDP chairman had declared a day before that the law would bring in revenues of 13.2 billion dollars and 50% of the gas production would be traded on the Romanian stock exchange. As a result of discrepancies between the law and Dragnea’s public statements, the two have decided to look for a solution and postpone the debates for a week.

In addition, Iulian Iancu has made it clear that there are problems with certain details in the law: „We talked a little earlier with Liviu Dragnea … There are other aspects of detail to be taken into consideration, because we see certain aspects and concerns (sic) are hidden in the details. We want to avoid worries and suspicions. All details are to be discussed this week, ” said Iancu, quoted by Agerpres.

According Agerpres, the SDP Leader had declared that, by the provisions of the off-shore law the Romanian State would have major benefits of 50% of gas production, which would be traded on the Romanian market, and the extra income tax, in addition to royalties.

“This summer, amendments were introduced in the Chamber of Deputies, which, in addition to the ones brought by the Senate, envisioned some things, namely: an extra income tax, which could go up to 13.2 billion dollars . Also, 50% of the gas production is traded on the Romanian stock exchange. These two things have remained unchanged. (…) There is absolutely nothing to change about what we said this summer. The Romanian state will have the same major benefits, namely 50% of the gas production that will be traded on the Romanian market, and the additional income tax, which comes in addition to royalties. The third issue that was actually eliminated in the Chamber of Deputies: general taxation is not frozen, but only the specific tax regime for offshore, namely the respective royalty and the additional income tax”.

Regarding the mechanism for deducting investments from the tax amount to be paid, he said that the question was whether the investments were deducted within a longer or shorter period, having no influence on the amounts that the Romanian state will earn.

“This summer we said that we needed to correlate the provisions of the law with the annex, namely, to explain the mechanism of deduction of investments, with which everyone agrees, because it is natural. The question is whether the investments are deducted within a longer or shorter period, having no influence whatsoever on the amounts that the Romanian state would earn due to the respective law. This is actually all the discussion, namely, if the 60% limit of income is reached, up to which the investment can be deducted in that reference period – the month, the year, and so on – or 60% of the extra income tax. And in one way or another, we are talking about the same amount deducted and the same amount that would be paid to the Romanian state ”

The draft law, under review at the request of President Klaus Iohannis, was due to enter the debate in the Chamber of Deputies’ Industry, Budget and Administration Committees Tuesday.

The draft was adopted by the Senate on Monday as the first Chamber seized, with 81 votes in favor, nine against and 15 abstentions.

(Traducerea: Ruxandra Stoicescu)