Romania’s planned increase in the dividend tax rate from 10% to 16% is expected to generate RON 3.6 billion (EUR 720 million) in annual revenues, finance minister Alexandru Nazare said on June 23 following his hearing before the expert committee in Parliament.
“Yes, it is an annualised amount for next year, with an impact of 3.6 billion. I will check this impact, it is calculated in the ministry,” Nazare stated, as quoted by Economica.net.
He added that each fiscal measure will be individually assessed and discussed with the European Commission before the final package is approved.
The dividend tax hike is one of several measures included in the ruling coalition’s fiscal adjustment plan, part of ongoing negotiations with the European Commission ahead of the ECOFIN Council meeting scheduled for July 8. The final version of the fiscal package is expected to be aligned with European requirements aimed at narrowing Romania’s budget deficit.
The proposed increase in the dividend tax rate marks a return to the level applied prior to the 2017 tax cuts and is one of the most substantial contributors to the planned fiscal consolidation. Alongside this measure, other tax changes under consideration include adjustments to capital gains taxation, elimination of most preferential VAT rates, and sector-specific levies such as a proposed tax on excess banking profits.
The government has not yet published its full ruling strategy or fiscal plan, citing ongoing consultations with EU institutions. Romania remains under close scrutiny from credit rating agencies and EU budget monitors due to persistent deficit challenges.
The Finance Ministry is expected to present updated budget projections once a final agreement is reached with the European Commission.
iulian@romania-insider.com
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