Romania considers new tax on banks’ “excessive profit,” targeting RON 1.5 bln

Romania’s new government is weighing the introduction of a temporary tax on what it terms the “excessive profit” of banks, according to the ruling strategy confirmed by minister of finance Alexandru Nazare and cited by Economedia.ro on June 23. The measure is expected to generate RON 1.5 billion (USD 324 million) in additional annual revenue.

While the draft government programme refers to “taxing the excessive profit of banks for a limited period,” it does not define the term “excessive profit,” nor does it specify the duration or exact rate of the tax. A 29% rate has been circulated in media reports, but it is not included in the official ruling document.

The Ministry of Finance has confirmed that discussions are ongoing with the National Bank of Romania (BNR) and banking sector representatives regarding the measure’s potential impact. The lack of formal parameters suggests the proposal remains under technical and political negotiation.

Romania’s banking sector reported a 5.4% year-on-year increase in aggregate profits in 2024, reaching RON 14.0 billion (EUR 2.8 billion), based on data from the BNR. 

The proposed new tax would come in addition to the “special tax on banks,” introduced in 2024, which imposes a 2% levy on the turnover of credit institutions. This tax is applied on top of the standard 16% profit tax. In 2024, it brought RON 967 million to the state budget, and the government has projected RON 1.3 billion in revenues from it under the 2025 budget.

Romania’s largest bank by assets, Banca Transilvania, is warning about the authorities’ intentions to introduce “taxation of banks’ excessive profits for a limited period,” according to Economedia.ro.

Omer Tetik, CEO of Banca Transilvania, says that any additional taxation “will reduce banks’ lending capacity and, ultimately, will be seen in an economic downturn, and the measure will also affect the 8 million Romanians who are indirect shareholders of the bank, through private pension funds.”

iulian@romania-insider.com

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