- Romania plans to its standard VAT rate from 19% to 21% as part of a fiscal reform package to address a growing budget deficit. Essential items like food and medicines will continue to have a reduced VAT rate of 11%. The government also announced a freeze on public-sector wages and pensions, and a 10% increase in excise duties on fuel and alcoholic beverages. These measures aim to prevent the risk of defaulting on debts and to restore investor confidence. Romania’s budget deficit was 9.3% of GDP last year, significantly above the EU’s recommended 3% ceiling. Further fiscal adjustments are expected soon.
Source: balkaninsight.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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