Hungarian Democratic Union of Romania (UDMR) leader Kelemen Hunor said on Wednesday that local authorities should be allowed to decide on possible reductions in local taxes and duties, within established limits, including cuts of up to 50% to property taxes approved in December 2025, depending on their financial capacity.
Speaking at Parliament, Kelemen argued that local administrations should have flexibility to correct sharp tax increases, mentioning cases where property taxes reportedly rose by as much as 300% for standard apartments. He said acknowledging and correcting such decisions would be a sign of political responsibility and maturity, not weakness.
Kelemen added that technical issues related to taxpayers who have already paid higher taxes could be solved by local authorities, either through refunds or by offsetting amounts in future tax calculations. He stressed that such mechanisms already exist and are not an obstacle.
On the possibility of reducing VAT, similar to measures taken in other European countries, the UDMR leader said a detailed analysis was needed, particularly in light of last year’s VAT increase, high inflation of nearly 10% and a significant decline in consumption. He also said the government should provide citizens with a clearer medium-term outlook on fiscal policy to avoid uncertainty and speculation, noting that some recent measures should be treated as temporary.
Regarding pensioners, Kelemen said coalition talks held two weeks ago focused on providing a one-off payment in 2026 for those with low pensions, following a similar approach used in 2025. He said pensioners with incomes of up to 3,000-3,500 lei had been most affected by inflation and declining purchasing power and should be prioritised, even though the government lacked fiscal space for permanent pension increases.
Asked whether the governing coalition could break apart if the prime minister refuses to reconsider tax increases, Kelemen said it was too early to speculate, adding that the prime minister currently has the coalition’s support and is consulting with the Ministry of Finance. AGERPRES
