The President of SMEs Romania warns that the increase of VAT to 21% in the HoReCa sector could cause losses of 10 billion lei and would affect competitiveness.

Florin Jianu, the president of SMEs Romania, stated that the increase of VAT to 21% in the HoReCa sector could generate a loss of approximately 10 billion lei from turnover, thus also affecting the collections to the state budget. He emphasized that there are no measures for economic recovery or support programs for SMEs, while discussions focus on increasing taxes.

INS data indicates a 30% decrease in tourism, and a standard VAT rate could lead to a reduction in competitiveness. SMEs Romania requests the maintenance of the reduced VAT rate at 11%, the elimination of unnecessary bureaucracy, and a reduction in electricity prices, which are 50% higher than in Western Europe. Prime Minister Ilie Bolojan mentioned that the evaluation of the VAT rate will take place in October. Additionally, there was discussion about increasing the gross minimum wage in the country starting January 1, 2026.