The draft law, which provides for some fiscal-budgetary measures, such as increasing VAT to 21%, was put up for public debate on the website of the Ministry of Finance, and the total impact of the proposed measures is 10.7 billion RON in 2025, of which 9.49 billion RON on the revenue side and 1.25 billion RON on the expenditure side.

„Within the measures aimed at fiscal consolidation, the re-establishment of VAT at two rates is foreseen and it is proposed: increasing the standard rate from 19% to 21%; eliminating the application of the reduced rate of 5% and applying a reduced rate of 11% for operations currently subject to the reduced rate of 5%, respectively for: the delivery of school textbooks, books, newspapers and magazines, the services consisting of allowing access to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, zoological and botanical gardens, the delivery of firewood and the delivery of thermal energy in the cold season, intended for certain categories of consumers; increasing the reduced VAT rate from 9% to 11% for a narrower range of goods and services, respectively for: medicines for human use, food intended for human consumption, with certain exceptions, water for irrigation, fertilizers and pesticides, water supply and sewage services, buildings intended to be used as nursing homes and retirement homes, children’s homes and recovery and rehabilitation centers for disabled minors, accommodation and restaurant/catering services,” the document reads.

According to the project, it is proposed to increase the tax rate from 10% to 16% for dividends distributed between Romanian legal entities starting with January 1, 2026/the first day of the modified fiscal year starting in 2026, for fiscal-budgetary reasons.

„Since, according to Law no. 31/1990 on companies, dividends may be distributed from the profits of the year 2025/the modified year starting in 2025, based on interim financial statements prepared during the year, based on this legal framework, transitional rules are established for dividends distributed, according to the law, based on interim financial statements prepared during the year 2025/the modified fiscal year starting in 2025, thus proposing to maintain the 10% quota for these dividends,” the draft states.

The draft also provides for an additional tax for credit institutions. For fiscal and budgetary reasons, it is proposed to increase the tax rates as follows: 4%, for the period July 1, 2025 – December 31, 2025 inclusive; 4%, starting with January 1, 2026.

At the same time, rules are proposed for: the calculation of the additional tax starting July 1, 2025; recalculation of the turnover tax, in case of errors defined according to accounting regulations.

According to the project, it is proposed to eliminate the exemption facility from paying social health insurance contributions for individuals who are pensioners, for pension income, for the part exceeding the monthly amount of 3,000 RON, for each pension right.

Also, between August 1 and October 31, 2025, revenues from the HoReCa sector will be monitored, and depending on the results of the analyses performed, a decision will be made on the VAT rate to be applied to this sector.

According to the document, the financial impact on the general consolidated budget is 10.745 billion lei this year, of which an increase of 9.495 billion lei in budgetary revenues and a decrease of 1.250 billion lei in budgetary expenditures. For the next four years, the impact is 92.626 billion RON, of which an increase in revenues by 35.258 billion lei and a decrease in expenditures by 57.367 billion RON.

„The draft law regulates some fiscal-budgetary measures and aims to regulate measures to ensure the consolidation of Romania’s financial sustainability by limiting state spending and increasing revenues so that the financing of categories of public services intended for citizens can be supported from public funds. To achieve the goal, it is necessary to establish a series of exceptional measures so as to ensure compliance with the commitments assumed by Romania regarding compliance with the budget deficit target, requiring both a reduction in operating expenses of public institutions and authorities and an increase in budget revenues. Achieving the goal will ensure the sustainable correction of the excessive deficit, aiming at the same time to improve the quality and structure of public finances, maintain investments and consolidate the growth potential of the economy”, the explanatory memorandum of the project states.

According to the cited source, this law regulates the following categories of specific measures to determine the achievement of the intended purpose: proportional, reasonable and equitable fiscal measures for the fair settlement of fiscal burdens that reflect the principle of equality before the law, by imposing identical treatment for identical situations, and taking into account, at the same time, the contributory capacity of taxpayers, taking into account the elements that characterize their individual situation and social burdens; measures in the budgetary field to limit public spending to a sustainable level and to ensure a sustainable correction of the excessive deficit; measures in the field of the education system to eliminate the risk of the impossibility of the Romanian state’s financial support, within the current legal framework, of the right to education, guaranteed by the Constitution of Romania, republished; measures to ensure fiscal compliance in order to sanction acts and commercial acts considered illicit in the field of gambling, in order to properly capitalize on the fiscal resources of the Romanian state and its administrative-territorial units; measures in the field of health that establish clear and predictable rules for the application of social health insurance contributions, including for pension income, as well as for dependents; measures in the field of transport and infrastructure that aim at the application of tariffs for the use of the national road network, in order to maintain and modernize the transport infrastructure, in conditions of transparency and predictability for users.

AGERPRES