Joint Statement from the Romania Business Community on Progressive Taxation

Jun 17, 2025

Since 2019, Romania has been under the excessive deficit procedure. Real solutions have been postponed for too long, and we now face a difficult situation regarding budgetary sustainability. Under these circumstances, the swift formation of a new government and the adoption of a realistic plan of measures are essential to keep the economy on a stable trajectory.

In a previous public letter, we, the representatives of Romania’s private sector, outlined the principles that, in our view, should underpin the structural reform plan of the budgetary system. We believe that the budget deficit should be corrected through efforts to reduce public spending and improve revenue collection, without further increasing the tax burden. In the long term, we consider that a strategic approach is needed to reduce fiscal deficits, based on unlocking Romania’s economic growth potential. Fiscal reforms should support the private sector’s ability to invest in the national economy.

In response to recent public proposals to introduce a progressive income tax for individuals as a measure to reduce the budget deficit, we reiterate our previously expressed position. The business community believes this measure would not generate the necessary budget revenues in the short term and, in the long term, should be evaluated considering its full economic impact on the labor force and investors, with broad consultation of all stakeholders.

Signatory Organizations:

  • Romanian-German Chamber of Commerce and Industry – AHK

  • American Chamber of Commerce in Romania – AMCHAM ROMANIA

  • Romanian Businessmen’s Association – AOAR

  • Belgium-Luxembourg-Romania-Moldova Chamber of Commerce – BEROCC

  • British-Romanian Chamber of Commerce – BRCC

  • French Chamber of Commerce, Industry and Agriculture in Romania – CCIFER

  • Romania-Portugal Bilateral Chamber of Commerce – CCBRP

  • Italian Chamber of Commerce in Romania – CCIPR

  • Swiss-Romanian Chamber of Commerce – CCE-R

  • Dutch-Romanian Chamber of Commerce – NRCC

  • Employers’ Confederation CONCORDIA

  • Foreign Investors Council – FIC

  • Romanian Business Leaders Foundation – RBL

 

Read the full statement here