This involves increasing the personal tax allowance from 29,700 to 40,020 lei, i.e. by almost 35 per cent. It should be noted that, with regard to personal income tax, the amendments proposed by MPs were partially supported. Under these amendments, for certain categories of citizens – including those with disabilities since childhood, as well as those affected by participation in hostilities or the clean-up following the Chernobyl nuclear power station accident – the personal allowance has been increased to 46,680 lei. The tax-free allowance for dependants will also rise: from 9,900 to 11,040 lei.
These measures are designed to reduce the tax burden on workers and increase household incomes. It should be noted that, following the COVID-19 pandemic, the authorities did not raise the personal tax allowance, a move that consistently drew criticism from experts. This year, the focus is on increasing the incomes of citizens participating in the formal economy.
At the same time, mayors have expressed concerns that these increases will reduce local budget revenues, where personal income tax forms the core of revenue. They have estimated that the losses could amount to 830 million lei and have demanded that provision be made for their compensation in the budget.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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