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Former premier Florin Cîțu urges eight tax cuts for the 2027 budget

Florin Cîțu called on the government to adopt eight fiscal measures, including lowering VAT to 19% and cutting dividend tax to 5%, for the 2027 budget.

Former Romanian premier Florin Cîțu posted a list of eight fiscal actions he believes the government should embed in the 2027 budget. His plan calls for a VAT reduction to 19% and a steep cut in dividend tax from 16% down to 5%. He also wants to eliminate the surcharge on part-time employment contracts and the additional tax on medical-leave benefits.

Cîțu proposes that the health insurance contribution (CASS) be calculated solely on the taxpayer’s highest income, removing separate contributions for each income stream. The former leader contrasts a welfare-focused government with one that prioritises state revenue, arguing that retaining officials who increased taxes would indicate a continuation of higher-tax policies and a tougher economic outlook. He says the composition of the cabinet before the budget is presented will reveal the direction of fiscal policy.

Why it matters

The proposals could shape Romania's tax landscape and affect households and investors if adopted.

In this story

tax cutsVAT reductiondividend taxhealth insurance contributionbudget 2027fiscal policyeconomic outlook
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