Starting August, Romania will have two VAT rates instead of three as was the case until now (5%, 9%, 19%).

Instead, the Government will enforce two higher rates of 11% and 21% starting August.

"Medication, food, public services, water and sewage, irrigation water, books, firewood, and thermal energy will all remain at a reduced VAT rate. We propose that the HORECA industry also stays at this level. (...) Another measure is a 10% increase in excise duties for alcoholic beverages and fuels. The excise duty on cigarettes will also increase," Bolojan stated.The PM added that the tax on dividends will be hiked from 10% to 16% starting January 2026, while also mentioning a higher tax on banking profits from 2026.

Property taxes will also go up, with Bolojan saying that Romania's current tax collection on this segment stands at 0.5% of GDP versus the EU average of 1.8%.

"If we were to do nothing or delay these measures significantly, there would be several consequences, potentially leading to the Romanian state's insolvency. Our creditors, who currently lend to us and whom we'll need in the future – as we cannot function otherwise – would stop providing loans. This would leave us unable to cover state expenses, including salaries and pensions. Furthermore, access to EU funds is conditional on fiscal reform; without it, we would lose access to these vital funds," said the PM in a press conference.

The Government will also limit wage bonuses for public sector employees, while public pensions and wages will remain at current levels by the end of 2026.

Also, seniors with pensions exceeding RON 3,000 (€603.58) will pay an additional 10% contribution for healthcare.

At the same time, Bolojan said the leadership of the tax administration agency ANAF would be changed with clearer targets on tax collection.

Romania recorded the highest government deficit among EU member states in 2024, standing at -9.3% of GDP.