Prime Minister Ilie Bolojan announced on Wednesday a new set of fiscal measures aimed at reducing Romania’s budget deficit by introducing higher taxes and structural adjustments that will come into effect in two stages, starting August 1, 2025 and January 1, 2026. Among the headline changes is a proposed increase in the dividend tax rate from 10% to 16%, to be enforced from 2026, alongside two tiers of VAT: 11% and 21%, which will apply from August onwards. The measures were presented during a