Statement on the Proposed Income Tax Changes under the Fiscal and Customs Policy for 2027
INCOME TAX: 103 LEI MORE FOR EMPLOYEES, BUT MUCH HIGHER TAXES FOR OTHERS
The Civic Movement “Construim Încredere” (“Building Trust”) has analysed the proposed changes to income taxation included in the Fiscal and Customs Policy for 2027.
Our analysis shows that the effects differ significantly across various categories of taxpayers. Increasing the personal tax allowance is a welcome measure, but the actual benefit for an employee remains limited. At the same time, for peasant farms and individuals earning income from capital gains, the proposed changes would result in a considerable increase in the tax burden.
Three figures illustrate the impact of the proposals most clearly:
🔹 103 lei per month — the maximum tax benefit for an employee resulting from the increase in the annual personal tax allowance from 29,700 to 40,000 lei;
🔹 +71.4% — the increase in the tax payable by peasant farms on the same amount of taxable income, as a result of raising the tax rate from 7% to 12%;
🔹 from 6% to 12% — a doubling of the effective taxation of capital gains, following the shift from taxing 50% to taxing 100% of net capital gains.
We believe that fiscal policy must be assessed as a whole. A modest benefit granted in one area cannot be considered separately from tax increases introduced in another.
In this context, the Civic Movement “Construim Încredere” (“Building Trust”) calls for the continued increase of the personal tax allowance and its periodic adjustment in line with the cost of living, the retention of the 7% tax rate for peasant farms, and a reassessment of the complete removal of the tax relief applicable to capital gains. At the same time, we consider it necessary to assess the cumulative impact of all fiscal changes planned for 2027 on household incomes and the purchasing power of the population.
A tax reform should create more space for work, initiative and investment — not merely more space for increasing budget revenues.
📄 The full analysis and the statement of the Civic Movement “Construim Încredere” can be consulted below.