The bill was approved in the first reading by a vote of 53 members of parliament. Under the bill, the annual income tax exemption for individuals will increase from 29,700 to 40,020 lei, and income tax arrears of up to 100 lei will no longer prevent the application of the 2% deduction. Owners who have lived in their primary residence for at least three years will be eligible for a tax benefit upon its sale, provided it is their only residence, even if they are not registered at that address. At the same time, there are plans to reduce the list of tax-exempt income for individuals and to revise the taxation of investment income, capital gains, and non-residents. The income tax rate for peasant farms will be increased from 7% to 12% and aligned with the rate for sole proprietorships. The zero tax rate on undistributed profits will remain in effect until 2029, and the threshold for turnover or asset value for companies eligible for this benefit will increase from 100 million to 200 million lei. Payment of income tax for 2027–2029 may be deferred until dividends are distributed or prior-year losses are offset. The bill also provides for a revision of the criteria for applying the 4% tax rate, the elimination of the income tax exemption for loan and savings associations, trade unions, patronage organizations, and private educational institutions, as well as the introduction in 2027 of an 18% tax rate on income from financial and insurance activities. Gambling and lottery operators will pay a 6% "vice tax" on funds received to replenish gaming accounts or from ticket sales. It is proposed to raise the VAT rate for the HoReCa sector from 8% to 12%; the 12% rate will also apply to livestock, crop, and horticultural products, as well as quinces and currants. The 8% rate will remain in effect for bread, milk, fruits, vegetables, eggs, poultry, and other essential goods. Starting April 1, 2027, residential natural gas consumption of up to 150 cubic meters per month per connection point will be subject to VAT at a rate of 8%, while consumption exceeding this limit will be taxed at the standard rate. The first 100 kWh of electricity per consumption point will remain exempt from VAT with the right to deduct. Another change concerns the taxation mechanism for B2C distance sales of packages. Thus, packages valued at up to 150 euros will be subject to VAT, and a fee of 12 lei per package will be introduced. Starting next year, excise taxes are planned to be extended to nicotine-free liquids, energy drinks, and certain non-alcoholic beverages containing sugar or sweeteners, as well as fireworks. Excise taxes on tobacco products will increase by 20% in 2027, and over the following two years, they will rise by 15% annually. Tax arrears of up to 20 lei for each economic classification category will be automatically written off, and when calculating the luxury tax, the 0.8% rate will apply only to the portion of a property's assessed value exceeding 4 million lei. According to the Ministry of Finance's estimates, the implementation of this tax policy in 2027 will generate budget revenues of 5.1 billion lei: 820 million lei from income tax and the "vice tax," 1.6 billion lei from VAT, and 2.7 billion lei from excise taxes. The bill is scheduled to be considered in its second reading. // 10.09.2026 — InfoMarket.