Analysis of the Day: Alarm signal for Romania! The deficit, over 7% in 2024. Next is the increase in VAT and taxes

Findings:

• UniCredit Bank warns that Romania's budget deficit will exceed 7% in 2024.

• To reduce the deficit, increases in VAT, excise duties, property taxes, and commodity taxes will be necessary.

• Progressive income taxation may be introduced starting in 2026.

Key Takeaway:

• Romania's fiscal situation will significantly deteriorate in 2024, requiring drastic fiscal measures to correct the budget deficit.

Trend:

• Election years often lead to increased public spending and challenges in implementing tax collection measures.
  

Conclusions:

• Romania will need to implement tax increases to reduce the budget deficit, despite official denials of such measures.

Implications for Brands:

• Companies in Romania can expect tax increases and a potential decrease in consumer purchasing power.

• There may be additional challenges in the business environment due to fiscal instability.

Implications for Society:

• Increased taxes and duties may place an additional financial burden on citizens.

• Cuts in public spending and austerity measures could affect public services and living standards.

• The introduction of progressive taxation could lead to a more equitable distribution of income in the long term.

Source: https://newsweek.ro/economie/semnal-de-alarma-pentru-romania-deficitul-peste-7-in-2024-urmeaza-cresterea-tva-si-a-taxelor