In 2025, Romania plans to introduce a dual VAT rate system, according to Kelemen Hunor, President of the Democratic Union of Hungarians in Romania (UDMR). The standard rate of 19% will remain unchanged, while the reduced rate will be adjusted, with details to be finalized by the new Minister of Finance and approved by the Prime Minister.
Hunor emphasized the importance of maintaining the reduced rate for the cultural sector to support this essential part of the economy. He also stated that significant fiscal changes in 2025 are unlikely without impact studies and a well-prepared plan, and ruled out the introduction of progressive taxation.
Furthermore, Hunor highlighted the need to reduce bureaucracy by abolishing regional agencies, such as those of ANAF, and eliminating parafiscal taxes. These measures aim to streamline public administration and generate significant savings for the state budget. These announcements come as Romania faces a significant budget deficit, prompting authorities to seek ways to improve revenue collection and reduce public spending.