The working group, with a focus on budget, formed by the political parties that plan to emerge as the ruling majority in Romania, has reportedly come up with a series of measures aimed at addressing fiscal slippage, predominantly including tax hikes, according to Ziarul Financiar. It is a short list, yet not final or even partly confirmed, of the multitude of ideas that have been circulated over the past days.
The talks on the fiscal corrective plan should be completed on June 5, president Nicusor Dan said at a press conference on June 4, while the ruling strategy should be completed by the following Monday (June 9).
Discussions are currently ongoing in the working group, as there is no consensus between the parties on these measures.
The measures envisaged by the working group regards predominantly the revenues side:
VAT rate increase from 19% to 21% with the preferential 9% rate upped from 9% to 12%
VAT increase in HoReCa to 19%
Increase in dividend tax rate to 16% (10% currently), corporate tax to 19% (16% currently).
10% heath system contribution (CASS) on pensions above RON 2,500 (EUR 500)
Taxation of transfer/transaction prices at 2% of the value.
Solidarity tax for incomes higher than RON 10,000 (EUR 2,000): 16% of the amount above RON 10,000 until December 31, 2025.
Progressive taxation from January 1, 2026, proposed by the Social Democrats (PSD)
Increase in excise duties by 20%, except for gasoline and diesel
Taxing gambling and over-taxing luxury jewelry and expensive cars
Elimination of tax allowances for bars and nightclubs, which pay a 5% profit tax
Listing of state-owned companies
Privatization of companies such as Hidroelectrica, Salrom, Romgaz, Nuclearelectrica, etc.
According to press sources, the reformist party USR, supported by PNL, would also have proposed introducing social security and health insurance payments for the incomes derived from intellectual property.
iulian@romania-insider.com
(Photo source: Ungureanu Vadim/Dreamstime.com)
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