Romanians are tightening their belts after the VAT increase: the state collects more money, but the consumption of the population registers a significant decrease

The Romanian budget registered record receipts in 2025, but the increase in taxes and excises led to a significant decrease in population consumption. The state collected 133 billion lei last year, 10% more compared to the same period of the previous year.

Romanians are tightening their belts after the VAT increase PHOTO: archive, the truth

Romanians' incomes decrease while expenses increase

The increase in receipts was influenced by the increase in the VAT rate in August, which was reflected in higher prices for products and services across the economy.

After this increase, in September there was a decrease in VAT receipts, followed by a return in October, and in November the data indicated a decline again, a sign that Romanians reduced their expenses and restricted their consumption, according to Antena3.

Excise duty increases had different effects depending on the product category. For alcohol, the state collected approximately 2 billion lei in 2025, with receipts initially increasing after the increase, falling in November and returning in December, with the holiday season.

In the case of tobacco, the situation was more fluctuating. Although there were months with high receipts, such as August, other months recorded significant decreases, such as May or September, when revenues fell to 671 million lei.

Two increases in fuel excise have led to significant price increases at the pump.

In August, the state collected 2.3 billion lei, but in September and November the receipts decreased, against the background of lower consumption.

If in January the liter of diesel cost 7.48 lei, the state collected 49% of the price, and later, when the price reached 8 lei per liter, the state collected 55% through excise and other taxes.

The data show that after the tax hike, household consumption has steadily declined since August.