Government Plans Major Tax Increases, VAT Hike to 21%, Effective August 1

• The government has discussed tax increases with the European Commission.
• Tax increases total 10.6 billion lei this year, effective from August 1.
• Next year, tax increases will total 33.6 billion lei.
• Additional tax increases of 10.92 billion lei are planned from January 1.
• Total tax increases for 2026 will be 44.55 billion lei, which is 2.19% of GDP.
• The government plans to introduce these tax increases in Parliament this month.
• VAT will increase, with the general rate rising from 19% to 21%.
• A single reduced VAT rate will be set at 11%.

Source: romaniajournal.ro

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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