Romania’s planned excise hike risks boosting black-market alcohol

The cancellation of the additional 10% excise duty increase planned from January 1 would be a welcome relief for spirits consumption in Romania; otherwise, many consumers are likely to turn to untaxed and risky alcoholic beverages, warns the employers’ association Spirits Romania, CE Report quotes AGERPRES.

“Romanians are entering the winter holiday season with increasingly modest budgets and constantly watching promotions, after a year in which alcohol price increases—driven by higher excise duties imposed by the state—have become impossible to ignore. Higher prices have led many people to give up their preferred drinks and reduce purchases from official retailers, pushing them toward ‘homemade’ alternatives—untaxed and therefore cheaper. However, these drinks may hide serious risks of counterfeiting, with severe consequences for health. This bleak picture of a market in which consumers reduce legal purchases and turn to the untaxed segment is confirmed by the results of the latest survey conducted at the request of Spirits Romania,” the spirits producers said in a statement.

The survey—conducted by the ivox.ro platform between December 1–8 on a nationally representative sample of 1,012 respondents aged over 18—paints a clear picture: almost all respondents (92%) noticed that alcohol prices are higher than last year, and three out of five (59%) say that tax increases imposed by the state are the main reason.

Price is also a decisive factor. More than four out of ten respondents (43%) choose their holiday drinks based on value for money, only 20% choose based on taste, and around 90% say they closely follow promotions during the holiday season.

Regarding the impact of price increases, the survey shows that three out of five respondents (61%) bought less alcohol from official retailers, while one in seven (15%) switched to cheaper brands.

Half of Romanians (50.91%) agree that legal producers should be supported by the state through lower taxes and simpler procedures as a way to counteract counterfeit beverages, while almost half (47%) do not believe that additional state revenues should come from taxing more popular drinks—only one in five (19%) supports this idea.

Homemade alcoholic beverages are seen as a way to save money, with one in four respondents (25%) reporting savings of at least 20% compared to branded products, and one in ten (10%) saving more than 50%.

Despite health risks, only one in twelve respondents (8%) prioritize safe provenance, and 40% say they rarely or never check official labels.

“Legal producers understand the difficulties consumers are facing. Over the past decade, spirits have been the only alcohol sector that has consistently generated revenue growth for the state budget, even though they account for only one in four legally consumed alcohol bottles in Romania. This track record shows that balanced and fair taxation works—for the state, for businesses, and for consumers,” explained Florin Rădulescu, president of Spirits Romania, quoted in the statement.

In a context where disposable incomes are under pressure, canceling the 10% excise increase planned for 2026 would be a welcome decision for consumption in Romania, Spirits Romania reiterates.

“The data are clear: increasing excise duties does not bring more revenue, but instead drives people away from the legal market and exposes them to unnecessary risks. We stand with Romanian consumers and call for wiser and fairer policies that protect both health and the economy,” added Rădulescu.

The spirits sector is an important contributor to Romania’s economy. In 2024, it contributed nearly one billion euros to Romania’s GDP, a value comparable to the industrial output of counties such as Buzău or Olt.

The sector supports around 23,400 jobs, of which 9,200 are direct jobs in production and sales, 9,800 are indirect jobs in agriculture, logistics, marketing, and construction, and 4,400 are induced jobs in other supporting fields.

Excise duty on spirits was increased twice this year: by 4.4% starting January 1, 2025, and by 10% starting August 1, 2025. A new 10% increase is provided for in Government Decision no. 141/2025, effective January 1, 2026.

Spirits Romania is an employers’ association bringing together the main producers and importers of spirits in Romania and is affiliated with SpiritsEurope, the European-level representative organization of the alcohol industry, which brings together over 31 national associations from 24 countries.