Romania will have only two VAT rates, 9% and 19%, an aspect established by the authorities together with Celine Gower, CEO of SG Recover (Task Force for Recovery and Resilience), of the European Commission, who was in Bucharest last week, government sources said. on Thursday.

taxes – euroPhoto: Dreamtime
  • “I agreed with Ms. Celine Gower that from September there will be 2 VAT rates in Romania. Medicines, prostheses and food will remain culture with 9%. And 9% remained in the hotel system, because it is the same in Bulgaria,” government sources said on Thursday.

Changes are also being prepared in construction.

  • “In the construction industry, if the solution remains with the liquidation of CASS, the minimum wage will increase to 4,500 lei. That is, salaries will not decrease,” the sources said.

New discussions on fees and taxes will take place on Monday between the leaders of the coalition – Marcel Cholaku (PSD) and Nicolae Chuke (PNL), in which the finance minister will also take part. There will also be meetings with AmCham and businessmen next week.

Options put on the PSD and PNL table to close the budget hole

20 billion lei is a hole that the government needs to close, and fast. PSD and PNL discussed a number of fiscal measures, but they could not reach a final conclusion. A meeting of the PSD-PNL coalition to adopt fiscal measures to cover the budget hole will take place next week, official sources inform HotNews.ro.

At previous meetings of the PSD-PNL coalition, a number of fiscal measures were discussed, but without a final decision. However, there is consensus on some of the proposals, according to the cited sources.

The Liberals say they will not agree to a tax increase under any circumstances, and First Vice President Raresh Bohdan says there are “two visions” of a “fat state” and “pressure on the private environment.”

What taxes does PSD offer?

In the PSD coalition, he proposed two measures that were agreed with the liberals:

  • excessive taxation of transfer amounts in the case of companies that transfer their profits abroad or offshore. Here the tax will be 15%
  • 1% tax on residential property worth more than €500,000

However, there are currently no further details on how properties worth more than €500,000 will be identified.

The following options were also discussed in the Coalition:

  • dividend tax increase from 8% to 10%
  • micro-enterprises that exceed the rate of profitability of 30%, introduce a tax of 1% of turnover.
  • reduction of the maximum amount for micro-enterprises with several options to EUR 250,000

These measures sparked heated debates between the PSD and the PNL, and there is still no political consensus.

PNL First Vice President Raresh Bohdan claims that PNL will not agree to a tax increase, but they may discuss the liquidation of some facilities.

What fiscal measures does PNL offer?

  • retention of 9% VAT on food and medicine
  • Increase of VAT for restaurants from 9% to 19%.
  • increasing the tax on sugar and carbonated drinks
  • increasing fees for gambling licenses
  • increasing taxes on alcohol and tobacco
  • VAT increase to 19% on animal feed
  • Payment of KAS for workers in construction, agriculture and food industry

Another measure that was discussed in the Coalition was the cancellation of vacation vouchers.

“There were only general discussions without final conclusion. In any case, there was no question of reducing them for all state employees, only for those with a net salary of more than 5,000 lei, or issuing them only in the off-season (June 15 – July 1 and September 1 – September 15). He is right, and the business environment is right, when he says that it is not normal when a public servant from Bucharest with a salary of 7,000 lei or more receives vacation vouchers, while someone who works privately and receives 3,500 lei (and these people work hard and support the country with taxes) to look at the rich budgets, how they get leave from the state,” the PNL leader explained to HotNews.ro.