WAYS FOR IMPROVING THE SPECIFIC TAXATION SYSTEM APPLIED TO THE OIL AND NATURAL GAS SECTOR IN ROMANIA

BULEARCA, Marius

doi:10.65672/jfme.2025.1.2

WAYS FOR IMPROVING THE SPECIFIC TAXATION SYSTEM APPLIED TO THE OIL AND NATURAL GAS SECTOR IN ROMANIA

Authors

BULEARCA, Marius — Center of Industry and Services Economics, National Institute for Economic Research "Costin C. Kiritescu"of the Romanian Academy, Bucharest, Romania

Landing page: https://www.icfm.ro/jfme.icfm.ro/articles/vol13i1p21-35.html

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DOI: 10.65672/jfme.2025.1.2

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Abstract

As a sequel of research from previous years, this article aims to improve the specific taxation system applied to the oil and gas sector in Romania. The first part of the paper characterizes the specific taxation system applied to this sector, from which it results that the current upstream sector taxation system is, eminently, one oriented towards achieving short-term budgetary revenues, which does not bring a balance between the needs of the present and those of the future, being, thus, unsustainable in the long term. For these reasons, the second part of the article is dedicated to outlining measures to improve the current taxation system in the oil industry in our country. Given the identified deficiencies, and in order to achieve a balance between the needs of the present and those of the future, on the one hand, and the budgetary needs of the state and other strategic objectives, as well as the needs of the state and those of investors, on the other hand, the article has identified and detailed a set of measures that could have potential beneficial effects. But these must be balanced in a way that ensures energy security, protects vulnerable consumers, does not discourage investments, and at the same time allows the proper functioning of the energy market. And adapting a flexible hydrocarbon taxation system to exogenous stressors in order to ensure the need for crude oil and natural gas in crisis conditions is the solution to this problem.

JEL Classification

G18, H25, L71, E62, F64

Keywords

oil and gas industry, tax regime, taxation system, royalties

How to cite

BULEARCA, Marius (2025). WAYS FOR IMPROVING THE SPECIFIC TAXATION SYSTEM APPLIED TO THE OIL AND NATURAL GAS SECTOR IN ROMANIA. Journal of Financial Management and Economics, 13(1), 21-35. DOI: 10.65672/jfme.2025.1.2.

RePEc record

Handle: Repec:vls:rojfme:v:13:y:2025:i:1:p:21-35