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MKOR Survey: Three in Romanians do not believe money from new taxes will be spent efficiently by Government

July 24, 2025

 Three out of four Romanians (74%) are not confident that the Government will correctly manage the additional revenues obtained from the tax changes, and 64% are most afraid of the VAT increase from 19% to 21%, according to the June 2025 Consumer Sentiment - Public Perception of Taxes Survey, conducted by independent research agency MKOR."Romanians do not reject taxes, but the lack of fairness. Until privileges are not cut and it is not clearly communicated where the money goes, any new taxation will meet distrust and resistance," says Cori Cimpoca, founder of the research agency.According to the cited source, political institutions stand at an average level of 2.5 on a scale of 1 - 7 of trust. This is the lowest level since the Consumer Sentiment survey began in 2023. At the same time, only schools (4.7) manage to surpass the threshold indicating optimism, along with the Health Care System (4), which stands on the threshold.The quarterly data shows a historic low in confidence for all institutions measured: Government: 54% of Romanians grade it 1-2, average score 2.5; Parliament: 60% grades 1-2, average score 2.3; political parties: 68% grades 1-2 - the highest level of distrust, average score 2.1; local government: score 3,4 - almost one point difference from the Government, signaling that proximity matters; security and regulatory institutions: Police (3,9), National Bank of Romania (BNR) (3,9), Banks (3,7) - the "gray" zone of credibility; social pillars: school (4,7), health system (4) and Church (4) are the only ones that surpass the distrust barrier with an above average score.According to the authors of the survey, Romanians are sending a clear message: once the waste is gone, only then can they talk about new taxes.Almost half of the respondents (48%) prioritized cutting special pensions (29%) and fighting tax evasion & corruption (19%) as priority measures. Any other tax solution therefore starts with a severe legitimacy deficit if it is not preceded by these "anti-privilege" actions.Private sector employees support the elimination of privileges in the public sector (50%), +11 percentage points (pp) more than state employees (39%).Romanians are also reacting first and foremost to the immediate risk of a rise in the price of their daily basket. An increase in general VAT from 19% to 21% is by far the most feared measure, indicated by 64% of respondents.Next comes the removal of price caps on staple food (42%), a clear signal that cost-of-living anxiety remains a priority.The survey mentions the top measures of concern: 64% - VAT 21% - direct and immediate impact in all bills on daily consumption; 42% - Food prices - fear that current caps are disappearing; 32% - Bank transaction tax - affecting current payments and savings; 28% - Property tax at market value - pressure on the "asset-rich, cash-poor", especially retired home-owners; 24% - Progressive income tax - rural divide (+10 percentage points vs urban)."Against the backdrop of a tax package perceived as inevitable, 96% of Romanians will take measures to manage the possible tax measures. People are mainly turning to defensive, cost-cutting strategies, but also active tactics to increase revenues. The data shows a society ready to adjust its financial behavior as soon as the measures come into force," the document says.According to the survey, 51% will look for cheaper alternatives for current goods and services - a dominant reflex across all segments, but more pronounced among low-income earners (55%), 49% plan to cut their vacation and entertainment budget. The percentage rises to 64% among managers and entrepreneurs, and 34% say they will postpone big purchases (cars, appliances).People over 57 are most likely to forgo major investments (38%), 34% intend to save more, with a peak of 46% in Generation Z (18-27), a sign that young people prefer security rather than debt-based consumption, 22% would seek a better-paid job, and 17% would work overtime, reactions especially visible in the private sector (27% vs. 12% in the public sector). Only 4% say they would change nothing.The 2025 Consumer Sentiment - Public Perception of Taxes Survey was conducted from June 20-22, on a representative sample of 1250 adult respondents (margin of error ?2.8%, 95% confidence). The report X-rays the level of information, confidence and priorities of Romanians ahead of a possible tax package.

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