Politics

Which will be the first businesses affected by austerity measures. “We put us to the ground”

Increasing the general VAT rate will make people's resources lower, and they will reduce their expenses from services and tourism, says the president of the National Association of Travel Agencies (ANAT), Alin Burcea, who anticipates that the businesses in these sectors will be the first affected by the fiscal measures announced by the Bolojan Government.

“On us, those in tourism, these measures put us to the ground. The increase of the general VAT will make people's resources smaller and it is obvious where they will cut. As always, from services, from tourism. For us it is sad. A second part of the bad year awaits us,” Agerpres said on Wednesday.

He stressed that sales recorded this year by internal tourism decreased between 10% and 15%, according to ANAT estimates, and next year the decline could be higher.

“During this period, sales on internal-coast, balneo and mountain-have decreased by 10-15%, but what is harder. This year is a worse one last year, but next year it will be worse, because people have been affected. From July 1 and August 1, it will be more affected. In transport, the transport increases, an increase in prices in the chain and, obviously, the tourism will always be affected again, ”explained ANAT president.

“The budgets, if they are cut from income, will consume less tourism and will probably not reach restaurants at all. The resources are diminished, the money in their pocket. The man always meets the primary needs: house, table, school, gasoline, coffee and only, afterwards, tourism, holidays.

“We managed the performance to beat us Albanians”

Burcea also stressed that Romania has reached the tail of the ranking in Europe in terms of tourism.

“We managed to beat us not the Bulgarians, but the Albanians. In 2024, the Albanians had 10.3 million foreign tourists. We have been seven years to 2.5 million. We are the last in Europe,” added ANAT president.

“What do I want to say with this? A few expenditure reduction measures have started, tax increases have started, but what this government has to do yesterday, today, tomorrow, is a plan to recover the national economy,” he said.

On Wednesday, in a press conference held at the Victoria Palace, Prime Minister Ilie Bolojan announced the fiscal package on reducing the budget deficit, for which the Government will take responsibility next week.

Among the measures stipulated are: pensions and salaries in the public sector will remain capped in 2026, VAT reassembly at two quotas, 11% and 21%, and increased excise duties and fuels.

At the low VAT rate will remain medicines, foods, public services, water and sewerage, water for irrigation, books, firewood, thermal energy. And in the Horecca industry, the proposal is for VAT to remain low.

Another measure is the increase of excise duties by 10% for alcoholic beverages and fuels. At the same time, the excise duty for cigarettes will also increase.

Among the measures announced are: the application of the social health insurance contribution (CASS) to the pensions of over 3,000 lei, the increase of the didactic norm in two hours in the pre-university education, while the merit scholarships will be granted in a limited number, and the social ones, on criteria.

The package presented by the prime minister will be put in decision -making transparency during Thursday.

On the other hand, the emergency ordinance for establishing measures regarding the personnel paid from public funds, which establishes the amount of the increase for dangerous or harmful conditions to a maximum of 300 gross/month, was published on Monday night. The provisions of the ordinance enter into force starting July 1, 2025 and will be applied until December 31, 2026.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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