The draft fiscal policy for 2027 was published today for public consultations. The objective of the new fiscal policy is for every employed citizen to earn more and for every entrepreneur to be able to invest more in the country’s economic development, reports TRIBUNA.

The document lays the foundation for a simpler and more convenient tax system, with fewer taxes, greater competitiveness and easier administration. The burden on the competitiveness of domestic companies will be reduced, while the potential for tax evasion will decrease.

Among the main proposed measures are:

Reducing the number of existing tax regimes and lowering the tax burden on salaries. In the first stage, personal income tax will decrease from 12% to 7% for annual incomes below 1 million lei and will become 15% for those with annual incomes exceeding 1 million lei.

Legal employment will be supported: the personal exemption will be transformed into a direct monthly payment of up to 500 lei (an increase of at least 200 lei per month) for all those who work legally and have minor children.

Introducing a zero tax rate on reinvested (undistributed) profit, while the income tax rate on distributed profit will become 15%, encouraging investment in economic development.

Standardized and quickly refunded VAT: the standard rate remains 20%, but exemptions will be eliminated, making possible the full, monthly and automated refund of accumulated VAT.

Refunding excise duties for diesel fuel used in agriculture, with the effective rate gradually increasing to the minimum level allowed in the EU, in order to boost competitiveness. At the same time, new excise duties will be introduced for harmful or polluting products and activities, such as e-cigarette liquids, sugary or sweetened carbonated drinks, as well as fireworks.

Removing sector restrictions for the freelance regime: independent entrepreneurship (freelance) will be expanded to all types of economic activities, with taxation of 15% for incomes up to 1 million lei and 30% for incomes above 1 million lei.

Capping local taxes that carry abuse risks: property tax will be capped at 1% of the asset value, while local taxes applied to companies’ turnover will be capped at 3%.

By exempting reinvested profit from taxation, standardizing VAT and eliminating unjustified tax advantages, investments will be encouraged, while tax evasion and inequalities will be reduced. The new provisions are expected to reduce the budget deficit by around 6 billion lei in 2027, lowering the future burden on all citizens. Additional budget revenues should not affect the most vulnerable groups, and further measures will ensure that all those who work will earn more.

“We aim for a simpler system — everything that is simpler usually works better; a fairer and more transparent system that encourages work and investment. We will consult with the business community, non-governmental organizations, and the International Monetary Fund, which supports the approach of the Ministry of Finance,” emphasized Prime Minister Alexandru Munteanu.

The draft will be subject to public consultations until June 19, 2026. The proposals and recommendations of interested parties will be reviewed and taken into account in the process of finalizing the document.

Fiscal Policy 2027 is expected to enter into force in three stages:

October 2026 – food products, public catering, e-commerce;

January 2027 – medicines, cars, accommodation services;

April 2027 – energy resources.

The new Tax Code is planned to be drafted during 2026–2027 and submitted for approval in 2028.