Romania and Moldova weigh tax hikes to shore up budgets

Romanian analysts warn that a further increase of the value‑added tax to 24% could quickly raise revenue but risk pushing inflation past 11% and crushing household consumption. The proposal comes as inflation has already climbed to 10.9%, with families facing higher food, non‑food and tax expenses.

In Moldova, economist Veaceslav Ioniță argues the government can generate at least 1 billion lei for the state budget without raising VAT on medicines or food. He suggests the needed funds could be found through a more coherent reform of excise taxes on nicotine products, preserving price stability for essential goods while still addressing the fiscal shortfall.