Romania’s prime minister Marcel Ciolacu said on November 23 that he proposes two options for the tax reform envisaged by the Resilience Facility program: either a genuine single rate of 16%, which would greatly increase taxation on income and capital, currently 10% and 8%, respectively, or a progressive taxation system.

“I do not reject any of these two options. Each of them has pluses and minuses,” PM Ciolacu said, quoted by Economedia.ro. But he stressed that a final decision should be made for the medium term.

The tax reform would be enforced as of January 2025, and there would be no tax hikes during 2024, the prime minister assured. 

iulian@romania-insider.com

(Photo source: Inquam Photos/Sabin Cirstoveanu)