Romanian Social Democratic Party pushes for stricter tax regulations for multinational corporations and proposes introduction of a new sales-based tax burden
The Romania Social Democratic Party (PSD) has put forth a series of proposals aimed at strengthening the country's tax regulations, including the introduction of a new turnover tax and stricter rules to combat profit shifting by multinational companies.
Sorin Grindeanu, the interim party president of the PSD, has been at the forefront of these proposals. He has called for revisions to the initial fiscal package, focusing on changes to social contributions and tighter transfer pricing rules.
One of the key proposals is a 0.5% turnover tax that would be applied to all companies currently paying profit tax. This tax measure is part of a broader effort to increase revenue without disproportionately affecting low-income earners.
Grindeanu also emphasised the need for tighter regulation and increased taxation to combat profit shifting and tax avoidance by multinational companies. While specific mechanisms for this remain unspecified, the PSD's demands are reportedly included in the government's second package of fiscal reforms, expected by the end of July.
In addition, the PSD is proposing higher taxes on capital and large fortunes as part of a broader fiscal reform package aimed at balancing the tax burden more fairly. Grindeanu stated that it's unfair to ask low and medium-income earners to pay health system contributions as a first move.
These proposals come against the backdrop of Romania's ongoing efforts to narrow its budget deficit, which is expected to exceed 5% of GDP this year. The country is under pressure to meet EU budget deficit targets and has implemented austerity measures such as VAT increases and excise hikes.
The PSD's key demands are part of ongoing fiscal reform negotiations within the ruling coalition, with Grindeanu describing the alliance as "rather stable". The proposed tax measures align with the broader effort to stabilise fiscal health and increase revenues.
[1] Romania Insider, "PSD proposes new turnover tax on all companies paying profit tax", 1st June 2025, [link]
[2] Agerpres, "PSD pushes for stricter tax regulations, higher taxes on capital and large fortunes", 3rd June 2025, [link]
[3] European Commission, "Romania: 2024 National Excess Deficit Procedure", 15th March 2025, [link]
[4] Romania-Insider, "Romania's budget deficit reaches 9.3% of GDP in 2024, highest in EU", 30th March 2025, [link]
[5] Reuters, "Romania to implement austerity measures to reduce budget deficit", 1st April 2025, [link]
- The Romania Social Democratic Party (PSD) has proposed a 0.5% turnover tax on all companies paying profit tax as part of a broader effort to increase revenue and strengthen the country's tax regulations, which is a key aspect of the ongoing discussions within the ruling coalition on fiscal reforms.
- The PSD's proposals for higher taxes on capital and large fortunes, along with their emphasis on tighter regulation and increased taxation to combat profit shifting, align with the broader political and business environment focused on policy-and-legislation, finance, and general-news related to balancing the tax burden more fairly and stabilizing Romania's fiscal health.
