- The Romanian Government will assume responsibility before Parliament on July 7, 2025, for a package of fiscal measures.
- Measures include tax increases, notably on VAT, excise duties, and dividends, and freezing public sector pensions and salaries in 2026.
- The standard VAT rate will increase to 21% and reduced rates to 11%.
- Excise duties will rise by 10% and dividends will be taxed at 16%.
- CASS will be imposed on pensions over 3,000 lei.
- The measures aim to reduce the budget deficit, regain investor confidence, and avoid downgrading of the country’s rating.
- The Government adopted the draft law quickly without debate or vote in Parliament.
- The opposition can submit a motion of censure within 3 days; if rejected, the law is adopted.
- The President can request re-examination, but changes are likely to be final.
- Romania’s Fiscal Council highlights a significant VAT collection deficit, emphasizing the need to reduce tax evasion.
Source: fiscal-requirements.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.
