ROMANIA
Vice tax law to enter into force

The law regarding the financing of some health expenditures, called the vice tax, will enter into force in a maximum of a month and in the meantime the norms for applying it must be issued, said the minister of health Eugen Nicolaescu.

President Traian Basescu promulgated the law regarding the health sector reform last Thursday, after the judges of the constitutional court rejected at the end of March the request of 37 senators referring to the some stipulations of the law that violated the constitution.
The vice tax will become private funds of the ministry of public health (MSP) and is aimed at the excessive consumption of tobacco and alcoholic products, other than wine and beer, as well as for the financing of health expenditure.
These revenues will be used for investments in the infrastructure of the public sanitary system, financing national health programs and for the reserve of MSP used in special situations.The law forces legal entities that produce or export tobacco products to pay ten euros for every 1,000 cigarettes or cigars and 13 euros per kilogram of loose tobacco used for smoking. Legal entities that produce or import alcoholic drinks, others than beer, wines and fermented drinks, will pay two euros per liter of pure alcohol.
The legal entities that obtain revenues from publicity for tobacco and will pay a tax of 12 percent on revenue which includes valued-added tax (VAT). These revenues will become private funds of the ministry of public health starting 1 January 2007. (pi)

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