Tax measures discussed by the Romanian Government, focusing on the planned tax increases and spending cuts:
- Significant Tax Increases: The Romanian Government plans to implement tax increases totaling 10.6 billion lei in 2025 and 33.6 billion lei in 2026, including raising the standard VAT rate from 19% to 21% and increasing the reduced VAT rate from 9% to 11% for specific goods and services.
- Spending Cuts: Alongside tax increases, the government aims to reduce expenditures by 12.75 billion lei in 2025 and an additional 31.73 billion lei in 2026, which includes freezing public sector salaries and pensions. The overall impact of these measures is projected to be 23.36 billion lei for 2025 and 76.23 billion lei for 2026.
- Broad Scope of Changes: Additional measures include increases in excise duties on fuel, alcohol, and tobacco, as well as introducing a 16% dividend tax starting January 2026. The government’s strategy aims to enhance fiscal sustainability while addressing economic competitiveness.
Source Profit.ro
