Romania’s Senate approved legislation granting a series of tax incentives for companies in the domestic chemical industry using natural gas as feedstock, as authorities seek to encourage higher-value industrial processing of the country’s gas resources. The bill, which now heads to the Chamber of Deputies for a final vote, is backed by both governing and opposition parties.
According to the draft law, companies operating in Romania’s natural gas-based chemical industry will benefit from a five-year exemption from profit tax starting from the first investment, Profit.ro reported. Reinvested profits in eligible activities will also be exempt from taxation during the same period.
The legislation further introduces super-accelerated depreciation mechanisms for investments in the sector.
Additional incentives include exemptions from building and land taxes, subject to approval by local authorities, for periods of up to five years. Companies would also be exempt from fees related to changing land designation or removing land from the agricultural circuit for investment projects.
Lawmakers supporting the measure argued that Romania should prioritise the domestic processing of its natural gas reserves in order to strengthen industrial competitiveness and energy security.
The initiative comes as Romania prepares for the start of production from the Neptun Deep offshore gas project in the Black Sea, expected to significantly increase domestic gas output from 2027 onward.
Romanian authorities have increasingly promoted policies aimed at retaining more value within the domestic economy by developing downstream industries linked to natural gas production, including fertilisers, chemicals, and industrial manufacturing.
The bill also follows recent efforts by state-controlled gas producer Romgaz to acquire fertiliser producer Azomureș, a transaction supported by interim Prime Minister Ilie Bolojan as part of a broader strategy to revive Romania’s chemical industry using domestic gas resources.
iulian@romania-insider.com
(Photo source: Sasa Maricic/Dreamstime.com)
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