The coalition must decide on fiscal changes to close the budget hole. According to official sources, we were talking about a hole of 40 billion lei, of which 20 billion lei for revenues and the same amount for expenses.

Recent discussions within the parties show us that, according to sources, the following measures are on the table:

• The threshold for micro-enterprises will be lowered to €250,000 from 1 January 2024.

• Starting this year, the excise tax on gasoline and diesel fuel will increase. The sources told us not much, but very little.

• Gambling taxes will be increased this year.

• VAT on sweet drinks will increase from 9% to 19%. This is already 19%, but there are some exceptions, for example, BIO juices. Essentially, we want to eliminate these exceptions. There was a discussion about introducing an excise tax, but they changed their minds because it is very difficult to administer. ANAF will have no administrative capacity.

• The increase of VAT in Horeca is still under question.

• As for the increase in excise taxes on tobacco and alcohol, it is not yet known for sure whether they will increase. And this is a doubtful point.

• Workers in construction, agriculture, and the food industry will pay a health contribution (10%). Therefore, the possibilities are limited. They will remain only exempt from income tax.

We would like to clarify that the Coalition should make a decision on these measures on Tuesday or Wednesday. Some of them may need to be adjusted. The above list is subject to some changes.

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