Prime Minister Vasile Tofan presented the proposed fiscal policy measures for 2027, which will be subject to public consultations in the coming weeks, reports TRIBUNA.

According to the Prime Minister, the proposals are based on four main directions:

“We tax labor less, stimulate investment, tax harmful consumption, and balance consumption taxation,” the official stated.

The head of Government outlined the main provisions:

1. Increase of the annual personal exemption

• Personal tax exemption increases from 29,700 lei to 40,000 lei
• An increase of 10,300 lei per year

2. Stimulating investments

• The 0% tax rate on reinvested profit will be extended to small and medium-sized enterprises with annual sales between 100 million and 200 million lei
• The tax on dividends will increase from 6% to 8%

3. Taxation of harmful products and activities

• A 6% tax will be introduced for gambling activities
• Cigarettes: excise duty increased by 20%
• Heated tobacco products: excise duty increased by 15%
• Nicotine vaping liquids: excise duty increased by 50%
• Nicotine-free vaping liquids: taxed for the first time
• Sugary drinks and energy drinks: taxed for the first time
• Pyrotechnic products: a new excise duty of 25% of their value will be introduced

4. Protecting consumption

Reduced VAT rates will remain in place:

• 8% VAT for bread and dairy products, as well as fresh vegetables and fruits
• 8% VAT for medicines and certain pharmaceutical products
• VAT for HoReCa services, agricultural products, and other food products will increase from 8% to 12%

Differentiated taxation for utilities starting in 2027

Natural gas:

• 8% VAT for the first 150 cubic meters per month
• Consumption above this threshold will be subject to 20% VAT
  effective from 1 April 2027

Electricity:

• 0% VAT for the first 100 kWh per month
• Consumption above this threshold will be subject to 20% VAT
  effective from 1 April 2027

Thermal energy:

• The 0% VAT rate will remain unchanged.