Romania to hike alcohol excise and raise VAT on sugary drinks
Romania has approved a series of measures including an increase of alcohol excise duties and a 10% hike in VAT on sugary drinks.
In a decree published on the finance ministry’s website, the new ruling revealed that the excise duty on alcohol, which has been the same since 2015, will be increased as of 1 August. Additionally, it has been decided that VAT on non-alcoholic drinks with added sugar, sweeteners and flavours will increase to 19% from 9% as of 1 January 2023.
Other measures affecting the service and hospitality industries involve companies that are active in trade and services will soon be obliged to accept debit, credit or prepaid cards as a means of payment.
Also, tax deductions for an employee receiving the minimum wage can reach up to 45% of the salary, if the person has four co-dependents. The report stated that, for an employee with a minimum wage, without dependents, the deduction will be 20%.
According to a footnote accompanying the document, the Romanian government expects the new measures to boost budget revenues by RON1.195 billion (US$242 million/€241 million) this year, RON10.57 billion in 2023, and a total of RON41 billion in 2024, 2025 and 2026.