What impact will the economic measures have on the population. Bolojan: “A slight VAT increase also means a price increase”
Prime Minister Ilie Bolojan announced on Wednesday, July 2, new fiscal measures meant to reduce the budget deficit of Romania. “A slight increase in VAT will also mean a slight price increase, we must recognize”said Ilie Bolojan in front of the press, at the Victoria Palace.
Romanians can expect price increases. Photo: Archive
Among the main measures announced by Bolojan are the modification of VAT quotas, increased excise duties, tobacco and fuels, as well as expanding the taxpayer base to the public health system.
The prime minister announced the reduction of the number of VAT quotas from three to two: 11% (reduced share) and 21% (standard share).
“At the reduced quota will remain medicines, foods, public services water and sewerage, water irrigation, books, firewood and thermal energy. We propose that Horeca will remain at this level”, said the prime minister.
As for the Horeca industry, it will remain provisional at the low quota. The prime minister said that an audit will be made in October, and if the revenues will not increase according to the expectations, the sector could move to the 21% standard since the end of the year.
“A slight increase in VAT will also mean a slight increase in prices, we must recognize”, said Ilie Bolojan in front of the press, assuming the impact of the new measures.
Another announced measure aims to increase excise duties by 10%, applicable for alcohol, fuels, cigarettes.
“The second measure will be the increase of excise duties”, the prime minister said.
Another key element of the fiscal reform is the extension of the taxpayer base at the National Health Insurance House, in the context in which, according to official data, only 6 million Romanians actively contribute, while 16 million benefit from services.
In support of consumers, the Government announced the last days that the ceiling of the commercial addition to the basic foods was extended by another three months, until September 30, 2025, according to a project recently published by the Ministry of Agriculture. Romanians are already facing higher prices for RCA and electricity, after the ceiling expires.
