The government abandoned a plan to introduce an excise tax on high-sugar products such as sodas due to difficulties in application, government sources told Profit.ro.

In addition, following Monday’s discussions, taxation for micro-enterprises will be changed to a two-rate system, depending on two thresholds – a rate of 1% of turnover that will apply to an intermediate threshold, and a new rate of 3% for those between the intermediate threshold and €500,000.

While the abolition of the excise duty on sugar-rich products appears certain, due to the need to organize a special administration regime for new excise products, other discussed fiscal measures, such as a shift to micro-enterprises and possible more moderate ways of increasing excise duties on alcohol and tobacco, represent a high degree of uncertainty that could change from day to day.

Regarding the new increase in excise taxes on tobacco and alcohol, the Ministry of Finance is looking for more moderate options to increase budget revenues with minimal impact on the relevant industries. The increase in excise duties on alcohol and tobacco products should be based on the calendar established last year by the Government, also agreed with the companies, and the increase now will be a violation of these calendars.

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