Romanian banks oppose planned tax on “excessive profits”

The Romanian Banking Employers’ Council (CPBR) expressed strong opposition on June 25 to a proposed new tax on so-called “excessive profits” in the banking sector, which was included in the government’s 2025–2028 Ruling Programme. The association warned that the measure could generate adverse economic and social consequences despite offering the illusion of short-term fiscal relief.

“We do not agree with the intention of introducing a new tax on the banking sector and express our availability for real and applied consultations with the authorities so as to contribute with viable and reasoned solutions to the recovery of Romania’s budgetary situation,” CPBR stated in an official press release quoted by Economedia.ro.

The government, led by prime minister Ilie Bolojan, is reportedly targeting RON 1.5 billion in additional revenue from the sector through the proposed tax, which would apply at a rate of 29% to what it classifies as excessive profits. However, these figures do not yet appear in the official government programme, leaving room for discussions with the National Bank of Romania (BNR) and the banking industry regarding the measure’s potential impact.

The CPBR warned that the new tax, even if temporary, risks undermining confidence in the banking sector and could reduce investment appetite. The organisation argued that a well-capitalised, profitable banking system is essential to financing the real economy and supporting the state’s long-term fiscal recovery.

Although the proposal is framed as a temporary measure, no specific duration or application criteria have yet been detailed. The lack of clarity has prompted industry concern over unpredictable regulatory shifts.

Romania’s banking sector has remained profitable in recent years despite macroeconomic pressures. However, the government’s effort to narrow the country’s public deficit, which reached 9.3% of GDP in 2024, has led to mounting pressure for revenue-raising measures targeting sectors perceived as under-taxed or benefiting from windfall profits.

CPBR reiterated its call for constructive dialogue with authorities, stating its willingness to collaborate on alternative proposals that support both fiscal consolidation and financial system stability.

iulian@romania-insider.com

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