Novel Research Poll - 61% of workers concerned about income and purchasing power drop from proposed tax measures

Novel Research Survey: 61% of employees are very concerned about the decrease in income and purchasing power in the context of the government’s proposed tax measures.

In the context of the fiscal measures aimed at tax and tax rate changes proposed by the government to cover the budget deficit, over 60% of Romanian employees express very serious concerns about the negative impact on personal income, purchasing power, as well as the country’s economic stability, according to a national survey conducted by Novel Research among the employed population aged 25 to 65 in Romania. Against the backdrop of existing high inflation, there are serious fears that fiscal measures will affect households’ disposable income.

According to the survey, the majority of employees in Romania (over 82% of respondents are aware of the proposed government tax changes) are concerned and informed about the announced fiscal changes, and are analyzing their potential personal impact. Overall, if 7 out of 10 employees are concerned about the government measures’ impact on purchasing power, almost 8 out of 10 employees believe that the new measures will have negative effects on product and service price developments, thus accentuating inflation. This significant majority indicates concerns related to the economy’s development and citizens’ ability to maintain their standard of living.

In this regard, of all the changes announced by the government, measures related to the unified 19% VAT rate and the 10% increase in meal voucher taxation are significantly disapproved of (69% and 66% respectively), with a direct negative impact on the employee. Furthermore, in the context where meal vouchers are an additional benefit offered by many employers to their employees, a higher meal voucher tax is associated by 38.1% of respondents with a decreased value of this benefit over time, while 26% fear they will no longer receive meal vouchers from their employer. Employees who receive meal vouchers as part of their income experience a decrease in purchasing power.

Also, in terms of impact on the business environment, employees express concerns about the announced measures: 8 out of 10 employees believe that the Romanian state supports the business environment to a small extent or not at all. The perceived lack of support is a discouragement element for entrepreneurship and investments, potentially having negative effects on economic growth and job creation.

A widespread perception of instability regarding the country’s tax system is thus observed: 75% of those interviewed indicate significant general concern about the stability of the tax system.

“An 82% proportion of survey participants were aware of the package of tax and tax rate changes proposed by the Romanian government, indicating significant concern among people for the economy’s evolution and maintaining their standard of living, considering that the new measures will affect personal income levels. A widely spread perception of instability can lead to reduced trust in the country’s fiscal institutions. This can affect an individual’s economic behavior, such as investments or long-term financial planning.

Against the backdrop of the perception of lack of government support for the business environment, high inflation, and the conflict at Romania’s borders, the new measures only serve to amplify the state of concern and uncertainty felt by the population. Low confidence in the government can lead to both social and political instability,” stated Marian Marcu, CEO of Novel Research.

The study on the perception of the proposed government fiscal measures among employees in Romania was conducted by Novel Research from August 10th to 21st, on a representative sample of the employed population aged 25 to 65 in urban areas, comprising 1042 individuals. The margin of error is +3.6% at a 95% confidence level.

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