IMF recommends Romania to increase VAT and excise duties, introduce two income tax rates in latest report
The International Monetary Fund (IMF) issued new recommendations to Romania, among which is an increase in VAT, but also excise duties, dividend taxes, and the introduction of two income tax rates of 15% and 25%. At the same time, it…
Radu Dumitrescu · Journalist
· Updated · 3 min read
The International Monetary Fund (IMF) issued new recommendations to Romania, among which is an increase in VAT, but also excise duties, dividend taxes, and the introduction of two income tax rates of 15% and 25%. At the same time, it recommends the reduction or elimination of the health insurance contribution, as well as a change in property taxation and lower threshold for microenterprises.
IMF says that these measures could generate revenues of at least 1.2% of GDP in 2025 and help lower the deficit. The proposals are part of the IMF technical assistance program requested by the Romanian Finance Ministry.
