First note of payment of austerity. How Romanians felt, in the first month, VAT and excise expensive
The first month after the VAT increase and excise increase brought for the Romanians a “payment note” tough: the daily shopping cart, higher invoices and income that no longer cover the expenses.
Photo source: Frepik
A family of artists tells the truth how the first month of application of the new taxes overturned their budget. Elena O. says that, at the end of August, she woke up with only 700 lei, although she did not change her lifestyle.
First shock: petrol and more expensive trips
“Fixed these days I stayed and calculated with my husband each expense, because I did not understand why we have only 700 lei from everything I received this month. We were shocked, because we, in our life regime, did not change anything. On the contrary, I refrained from many expenses, but I did not know. Price increased by 2, 3, 4 or 5 lei, and the difference felt clearly in the total amount ”, tells Elena O.
The first shock came right at the beginning of the month: “The difference started from the first food, fixed on August 1, when we returned from a concert. The full pump had 20 lei.”
For artists, the impact of increasing excise duties and VAT is not only shopping, but also in service trips. “Like many of the artists' tagma, not only musicians, but also actors who travel a lot, we felt increased in all the trips. The air tickets have increased, the train tickets have increased, the bottled water has increased,” explains the spouses.
At the same time, their income began to decrease. “The fees remained the same, but the new tax rate is applied. The money earned is fewer, and often the organizers have started to reduce the fees, because the local administrations receive directives to reduce the expenses. This means a lower price for each artistic service.”
The effect is also seen in the showrooms. “The new quotas are found in the final cost of the ticket, and the public, faced with the same problems of personal expenses, cuts the first on the list the theater or concert. It is a vicious circle: our winnings decrease, and the public access to the culture becomes more difficult.”
Postponed expenses
The problems do not stop here. In the parents' groups, the family has already observed increases in rates for kindergartens and schools with extended program. “The costs for lunch and for the class auxiliaries have increased visibly. At the same time, the earnings of each family decrease. Many parents take into account a second job. But if the law by which those with more jobs can work for a maximum of 12 hours a day, it means obstacles from all parts for a decent living,”
The spouses say they were always purchased and correct with the payment of taxes. “We have always been balanced and honest compared to taxes and taxes. We pay the first debts and invoices, then we prioritize the medicines, the fuel, the obligatory insurance and the ruin. Only then do we forget what remains for food”, they confess.
Hygiene and maintenance products have become a luxury. “The expenses of personal care: hygiene, cleanliness, cosmetics, clothes maintenance, I did not even add them, although they are vital. After the first month after applying the new tax rules, for these we had nothing to allocate”, I say, the two, in unison.
“New clothes or shoes cannot be, and as the beginning of the school comes … it takes us horror”, concludes Elena O.
Data confirms: Inflation presses on consumption
Their situation reflects, at the micro level, the surprised painting and the latest consumer studies. “This summer was the one in which the Romanians began to feel the burden of inflation directly, a concern for 39% of Romanians according to our June 2025 study. The BNR has revised its forecasts, at an inflation estimated at almost 9% at the end of the year, a clear sign of increased fiscal pressure,” explain, for the truth, Cori Cimpoca, the founder of a company that conducts market studies.
According to it, the summer was marked by an increased increase in prices for railway transport, medicines, fuels, but also chain costs on food, utilities and housing, as an impact of VAT growth, which have become tangible for most Romanians.
Visible sacrifices
“For the population, especially among those with low incomes, this has already led to sacrifices: the polls talk about one third of Romanians who did not go on leave and almost 6 out of 10 who do not allow a one-week vacation, and those who left had lower budgets by up to 30%. Recreational/entertainment and holidays as a result of the entry into force of fiscal measures. Cori Cimpoca says.
Therefore, the last few months have been dominated by adaptation, caution and priorities: immediate vulnerability, pressure on consumption and rapid expenses. “It remains to see how things will be outlined in the autumn, considering that autumn comes with expenses for most of us, starting from the backpacks for the beginning of the school, to the growing invoices to utilities, with the coming of the cold season,” she completes.
In his opinion, the state institutions need constant and transparent communication with the population, to show that these measures are temporary, and the current impact is just a bridge over which we need to pass, for a better future. “Otherwise, I personally are very afraid for the future of this country”she concludes.
