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.
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