Romanian AUR party pushes bill to cut dividend tax from 16% to 8%

The Alliance for the Unity of Romanians (AUR) has submitted a legislative proposal to the Romanian Parliament that would halve the dividend tax from the current 16% to 8%. The draft, introduced by deputy Lucian Mușat together with colleagues Cosmin Hristu and Eduard Koler, argues that the lower rate will stimulate entrepreneurship, increase competitiveness and encourage reinvestment of capital in Romania.

AUR officials note that the dividend tax has risen successively from 5% to 8%, then to 10% before reaching 16% under the current government. In a statement, Mușat said, "Scădem impozitarea dividendelor de la 16% la 8%" ("We are lowering dividend taxation from 16% to 8%"). The party claims that a reduced tax burden will ultimately generate higher revenues for the state while supporting the Romanian economy.

The proposal is part of AUR's broader economic programme, which calls for fiscal policies that they claim are more equitable and conducive to growth.