VAT Could Rise to 24% in 2026 - Major Impact on Pensioners and Senior Citizens

Financial analysts are warning of an alarming economic scenario for 2026, in which VAT could be raised to 24% — a measure that would disproportionately affect seniors and pensioners in Romania. This drastic tax increase comes against the backdrop of a precarious budgetary situation and the pressing need to identify new sources of state revenue.

The fiscal measures implemented to date, including increases to property and vehicle taxes, appear insufficient to meet the 6% deficit target. The pressure to find additional fiscal solutions is growing ever more intense, threatening the economic stability of the most vulnerable sections of society.

Economics experts warn that a rise in the standard VAT rate could trigger an uncontrolled surge in prices, hitting essential goods first and hardest. For pensioners, who typically live on fixed and limited incomes, such an increase would mean a significant erosion of purchasing power.

Romania currently applies a standard VAT rate of 19%, with a reduced rate of 9% on basic foodstuffs, medicines, and district heating. The proposed scenario envisages raising the general rate to 23–24%, an increase that would place the country among the European states with the highest indirect taxation burden.

The situation is made all the more worrying when one considers Romania's inflation rate, which stands at 9.8% — nearly four times the European Union average of 2.5%. Specialists estimate that in the early months of 2026, the inflation rate could exceed 9%, further compounded by the new fiscal measures.

For seniors who depend on their pensions, this combination of high inflation and increased taxes represents a double blow. Medicines, food, and care services could become increasingly difficult to afford, forcing many older people to cut back on essential health and wellbeing expenditure.