Warning: VAT Could Rise to 24%, Significant Impact on Pensioners

Financial analysts are sounding a worrying alarm: VAT could reach 24% this year, an increase that would have a devastating impact on pensioners and older people on fixed incomes.

Experts argue that the recent rises in property and vehicle taxes are insufficient to meet the target of reducing the budget deficit to 6%, which could lead to further drastic fiscal measures.

Currently, the standard VAT rate stands at 21%, with a reduced rate of 11% applied to food, medicines, and district heating — products essential to seniors. An increase to 23–24% would mean significant price rises across all goods and services.

Impact on pensioners

For older people on fixed pensions, such an increase would represent a devastating blow. Romania's inflation rate has already reached 9.8%, compared with just 2.5% across the European Union, meaning that pensioners' purchasing power has deteriorated considerably.

Pessimistic forecasts suggest that the inflation rate could exceed 9% in the early months of 2026, disproportionately affecting vulnerable groups, including seniors who depend on limited incomes.

In addition, excise duties will rise by 10% from January, leading to immediate price increases on shop shelves for basic products frequently purchased by older people.

This situation places enormous pressure on pensioners' household budgets, forcing them to cut back even further on spending for medicines, food, and essential medical services.