Romania’s president Klaus Iohannis promulgated the fiscal package promoted by the government, which is expected to have a positive impact of just over 1% of GDP on next year’s budget balance.

The fiscal package includes measures aimed at reducing public sector spending and financial discipline.

Among them is the introduction of a tax of at least 1% of the turnover, if this is larger than the 16% profit tax, a 2% turnover tax for banks, the increase of taxation for some micro-enterprises, elimination of preferential VAT rate for some goods and services, increasing the tax burden on the self-employed, introducing an excise duty on drinks with high sugar content and increasing excise duties on tobacco and alcohol more quickly. 

The government expects RON 631 million (EUR 126 million) lower expenditures this year as a result of the fiscal package, Profit.ro reported. In 2024, however, the impact would be RON 20 billion (EUR 4 billion), of which RON 16.4 billion in additional revenues and RON 3.38 billion in lower expenditures.

Some RON 2 billion from combating tax evasion could be added to these amounts, minister of finance Marcel Boloș said.

iulian@romania-insider.com

(Photo source: Presidency.ro)