Romania on the Brink: New Tax Plan Sparks Nationwide Debate

Romania Faces Tax Overhaul: Party Leaders to Decide on VAT Hikes and Solidarity Levy Bucharest, Romania – June 9, 2025 – Romanian citizens are bracing for significant changes to their tax system. Party leaders are scheduled to meet tomorrow with Bucharest Mayor Nicușor Dan to finalize a draft proposal outlining new tax measures. The plan includes substantial increases in Value Added Tax (VAT) for various goods and services, the introduction of a solidarity tax targeting higher earners, and a new tax on financial transactions. Additionally, the proposal suggests eliminating certain bonuses. "Este ziua decisivă pentru traiul românilor!" stated a Realitatea Plus news presenter, highlighting the gravity of the situation. The presenter went on to explain the potential impact of the proposed VAT increases, citing examples such as higher costs for housing and energy. The proposed solidarity tax, with its various income thresholds (10,000 lei, 15,000 lei, and 17,300 lei), has also sparked considerable debate. Economists are currently analyzing the implications of the draft, particularly concerning the distinction between gross and net income, and whether the solidarity tax will lead to a decrease in overall income. The addition of a universal transaction tax adds another layer of complexity to the proposed changes. The upcoming meeting promises to bring clarity to the situation, and the final decision will undoubtedly shape the economic landscape of Romania in the coming months.