The first tax increases, as well as pension and salary cuts, could come into effect on August 1

Parliament will meet on Monday afternoon in a joint session to assume responsibility for the government's first package of fiscal measures to reduce the budget deficit. Until Monday morning, senators and deputies will be able to submit amendments to the bill drafted by the executive, which contains several tax and excise increases and targets the pensions and salaries of Romanians. According to the document, most of the measures will take effect on August 1. Petruta Obrejan has details.

Reporter: Increasing VAT from 19 to 21%, eliminating the exemption from paying health insurance contributions for pensioners whose monthly income exceeds 3.000 lei, increasing excise duties on tobacco, alcohol, and fuel products, imposing a surcharge on gambling, and imposing additional taxes on banks are just some of the measures included in the bill adopted on Friday, which the executive wants to bring before parliament as soon as possible.

It is estimated that, through the implementation of these measures, the impact on the consolidated general budget will be over 10.7 billion lei this year alone, with an increase of over nine billion lei in revenues and a decrease of over one billion lei in budget expenditures. The bill has already been sent to parliament.

Prime Minister Ilie Bolojan: No later than Tuesday, the date of the ECOFIN meeting, we will enter the final stage of the parliamentary procedure for assuming responsibility after reviewing the amendments and analyzing them at the government meeting to be held early next week.

The Economic and Social Council has given a negative opinion on the bill, stating that the measures proposed by the government will reduce the purchasing power of all citizens and affect stability and predictability in society.

Translated by: Radu Matei