Government responds to protest over tax reform

The objective of the fiscal policy and the Salary Law is to contribute to increasing incomes, investments, and economic development. In this context, the authorities will review the proposals and will continue broad consultations in order to identify a fair and sustainable formula for citizens and the business environment. The clarifications were made by Government’s spokesperson Daniela Crudu, with reference to the protest organized today against the tax reform proposed for 2027.

Daniela Crudu emphasized that discussions on the tax reform will continue, and its concept will be reconsidered.


“The objective of the fiscal policy and the Salary Law is to contribute to increasing incomes, investments, and economic development. We have heard various opinions and listened to people. We have already announced that we are taking a pause to rethink the fiscal policy and the other proposed measures. In the coming period, we will review the proposals and will continue broad consultations in order to identify a fair and sustainable formula for citizens and the business environment,” the Government’s spokesperson stressed.


The tax reform proposed by the Government for 2027 is currently at the stage of public consultations. It has generated intense debates, especially regarding the unification of the VAT rate and the impact on sectors such as agriculture, health, and energy.

Thus, several business organizations and representatives of farmers have requested a revision of certain provisions of the draft, in particular those regarding the VAT applied to certain products and services. In this context, the Ministry of Finance has announced that the draft remains open to amendments following public consultations.

President Maia Sandu has also said that tax reform is necessary, but the Government should take more time to analyze the proposals and criticisms put forward before approving the final version.

The main proposed measures include:


	
reducing personal income tax from 12% to 7% for annual incomes of up to one million lei and introducing a 15% rate for incomes exceeding this threshold;
	
applying a zero rate on reinvested profits of companies;
	
standardizing VAT at 20%, eliminating reduced rates, and introducing a fast and automated VAT refund mechanism;
	
transforming the personal allowance into a direct monthly payment for families with children;
	
extending the self-employment (freelance) regime and capping certain local taxes.