The tax on excisable goods, including tobacco, cedar and particular oil products, during the next three years will increase by 7% annually, except for particular categories of products, such as liquefied petroleum gas, crude oil, beer and alcohol. This is provided in the draft budgetary-fiscal policy for 2024 which was given a first reading by Parliament, IPN reports.

Minister of Finance Veronica Sirețeanu said the document provides that the rule of setting excise taxes for a period of three years will be maintained so as to ensure predictability. The excise duty rate on goods will be annually indexed to the forecast inflation rate of 7%. Not all the excise positions from the list were indexed at this value. There are excise rates that are much higher than the rates in the region, including the EU.

According to the minister, the bill modifies the fiscal regime for motor vehicles by imposing VAT on them according to the general principles as from January 1, 2025, by gradually reducing the excise duty rate.

The bill also provides for the extension of the range of fiscal stimuli and the revision of categories of costs incurred by employers in favor of employees, which are deductible for fiscal purposes, and for the extension of the categories of deductions for private individuals when setting the obligations related to the income tax.

The income tax rates withheld for investment and financial revenues in the case of private individuals will be standardized at 6%.

The draft budgetary-fiscal policy for 2024 is to be given a final reading.