Romania has no reason to increase VAT at the beginning of next year, Governor of the National Bank of Romania (BNR) Mugur Isarescu said, mentioning that three-month data show that the trend is very positive.
"I don't believe that VAT will be increased. We have no reason to increase it. It is also a regressive tax, it would heavily affect poorer social layers, but reading what appears in the press and from some analysts, one thing is overlooked: that currently, with only three months of this programme implemented, August, September, October, the direction is actually very good compared to the real data, because everyone looks at what had been reported and the reports weren't entirely solid. They were based on a budgetary programme that was slightly off from reality. I believe that the three-month period is far too short to rush to say that it's not working or is going badly. We still need to wait a few more months. The direction in which this programme is running is positive and revenues will increase because a good part of the 2025 revenues were based on reduced VAT, lower excises and so on," Mugur Isarescu explained.
He stated that the BNR supports the Government's correction programme through public appearances and discussions with international financiers.
Asked about raising the minimum wage, the BNR governor responded that he is cautious and that the discussions are political.
Moreover, he drew attention to the debates about the rollback or failure of the current package of fiscal measures, underscoring that Romania has regained international market credibility with considerable effort and this credibility can be lost if steps backward are taken or if indecision is shown. In the governor's view, the correction programme must continue.
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