Extensive price hikes take effect in Romania following government’s decision to raise taxes
Prices for an array of goods and services will rise in August after the Romanian government increased VAT and excise duties. Train tickets, communications, retail goods, and health contributions for previously exempted categories are set…
Radu Dumitrescu · Journalist
· Updated · 3 min read
Prices for an array of goods and services will rise in August after the Romanian government increased VAT and excise duties. Train tickets, communications, retail goods, and health contributions for previously exempted categories are set to take effect.
To tackle an out-of-control deficit, the government decided to increase the standard VAT rate from 19% to 21%, and reduce the number of reduced rates to one, namely 11%, from the current two rates of 5% and 9%. On the other hand, several retailers have announced they are freezing prices for a range of products or applying discounts to offset the VAT increase.
