The government will decide in the next period, following public consultations, the austerity measures necessary to cover the budget deficit. Thus, among other things, the increase in fuel excise duties by 10% and an increase in the general VAT rate to 21%, from 19%, from August 1 are foreseen. At the same time, new special taxes will also be levied on banks, and the dividend tax will increase from 10% to 16%, but from January 1, 2026.
The new measures will put pressure on inflation, especially by increasing fuel prices, which are found in the cost of transporting all goods.
Prime ministr Ilie Bolojan also announced “more efficient spending, reducing subsidies and ensuring transparency and performance” in state-owned companies, as well as capping salaries.
The first package of measures will be adopted by assuming responsibility by next week and will begin with the reestablishment of VAT at 2 rates – the 11% rate instead of the current low rate of 5% and the 21% rate instead of 19%. The reduced rate of 11% will remain for medicines, water, firewood and thermal energy.
The new package will be made transparent for decision-making on Thursday.
“We intend to hold public consultations by the end of this week and at the latest, on Tuesday next week, when we have the meeting of the European Union Finance Ministers, the Ecofin Council, to have this package adopted and we intend to put it into practice by assuming the Government’s responsibility during next week”, said the Prime Minister.
“We will re-establish the value added tax at two rates. Today we have three rates, 5, 11 and 19%. The two rates we propose to re-establish are the 11% rate and the 21% rate. Medicines, food, public water and sewage services, water for irrigation, books, firewood and thermal energy will remain at the reduced rate, as they have been until now. We also propose that the Horeca industry remain at this level”, announced the head of the Executive, quoted by News.ro.
Bolojan also stated that an analysis of the receipts will be made in October.
