Romanian Parliament Approves Increased Value Added Tax, Bank Tax, and Dividend Tax

Following the rejection of a non-confidence motion on 14 July 2025, Romania's parliament has adopted the Law on certain fiscal-budget measures, which was submitted by the government earlier in the month. The law was sent to the president for promulgation on 16 July. Some of the main measures concern VAT, including:

• An increase in the standard VAT rate from 19% to 21%;
• The replacement of the reduced VAT rates of 5% and 9% with a reduced VAT rate of 11% that applies to the following more limi…