Significant changes are coming to the Fiscal Code

Significant changes in the Tax Code will follow, which will bring increases in tax levels for real estate transactions and dividends, but also tax deductions for young people and families with children. Also, alcoholic beverages, sugar and cigarettes will become more expensive.

These are measures agreed by the coalition leaders that would be adopted by the Government next week, through an ordinance amending the Fiscal Code.

After the meeting of the official governing coalition, there is no information regarding the measures that PSD-PNL-UDMR have decided. According to some sources, however, the amendments to the Fiscal Code agreed by the coalition leaders provide deductions for low incomes, increased excise duties on alcohol and tobacco, but also some VAT increases.

Thus, according to the sources, in terms of deductions, those who will benefit are people with incomes up to 4.500 lei, and young people up to 26 years old will have deductions of 15% from the income tax. In terms of excise duties, the coalition leaders seem to have decided that they will increase alcohol and cigarettes, and in terms of VAT, it will increase from 5 to 9% for restaurants, catering and hotels.

For sugary drinks VAT will increase from 9 to 19%. At the same time, PSD, PNL, UDMR seem to have decided that the tax should increase for gambling winnings as well. Regarding the property tax, the leaders of PSD, PNL, and UDMR decided that it will be applied on the notary's grid and a residential-non-residential classification will be made, with the necessary tax. Some of these changes could take effect on August 1, and others from January 1, 2023.

Translated by: Radu Matei