The hypothesis of a VAT increase is not being considered for the 2026 budget and any potential adoption of other measures will be discussed within the governing coalition, Finance Minister Alexandru Nazare said on Tuesday at the Fiscality and Technology Summit.
"We are not taking into account the hypothesis of a VAT increase for the 2026 budget. I repeat, we are not considering this hypothesis. I know there has been a lot of speculation, opinions regarding a possible VAT rise. It will not be an easy budget to build. I am fully aware that this budget will need to focus mainly on the best possible absorption of the PNRR [the National Recovery and Resilience Plan]. The year 2026 will be the year of PNRR absorption. As for discussions related to the fiscal space, what new measures we might take, if we are to take such measures, they will be held within the coalition. But at this moment, we do not have a VAT increase in our plan," Alexandru Nazare said.
Asked about the special pensions, he replied that the topic is being considered by the governing coalition and discussions on this matter will be carried out today.
The Finance Minister also expressed confidence that Romania will meet its deficit target.
On the other hand, Nazare was asked by journalists about the protest organised on Wednesday by the trade unions and about the challenge to the freezing of the minimum wage. The Finance chief said he understood the discontent and brought to mind the difficult economic situation which Romania is currently facing.
"We are not going through an easy period and I believe everyone is aware of that and I fully understand the discontent. I believe that our role is to communicate as clearly as possible the situation Romania is in today. To convey this message effectively and the efforts we are undergoing to overcome the economic situation we are facing. I am optimistic about next year. I am optimistic that in 2026 the engines of the economy will restart, that the economy will recover. These messages are important for all Romanians, I am not talking only about the business environment. I understand there is discontent. Regarding the minimum wage, there is no cap, no barrier preventing some economic operators from increasing salaries, but only in areas where those operators can afford to do so," Minister Alexandru Nazare said.
He mentioned that messages had been received from the business sector, in which some economic operators conveyed that another increase in the minimum wage would be "very difficult to bear" for them.
"I believe we must remain balanced, as this essentially concerns the protection of jobs as well. We are experiencing an economic slowdown, we reached 0.8 percent last year. We are in a complicated area regarding economic growth. Wages have been rising year by year since 2021 and these are the messages we have received in the Tripartite Council. On the one hand, many companies tell us it is very difficult for them at this point to increase the minimum wage. On the other hand, there is of course justified pressure to increase the minimum wage and we are trying to maintain a balance in this area and there must be justification, we must look at the economy. We need to look at the competitiveness of the economy and try to find the best version between one demand and another," Alexandru Nazare added.
The Finance Minister was asked by journalists about the minimum turnover tax (IMCA) and stated that it limits companies' development. He believes that such measures must be approached with caution if the aim is to relaunch the economy and that the optimal solution for covering budget revenues should be found within the governing coalition.
The Chamber of Fiscal Consultants is organising the Fiscality and Technology Summit at Romexpo between 11 and 12 November.
Among the speakers announced by the organisers are Finance Minister Alexandru Nazare, President of the National Agency for Fiscal Administration Adrian Nica and Reinhard Biebel, Head of Unit for Direct Tax Policy & Cooperation at DG TAXUD - European Commission.
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