Romania’s higher spirits excise cuts legal volumes as untaxed market expands
Romania collected 587 million lei in spirits excise during the first half of 2026, despite a 26% increase in the duty per litre compared with 2024. Taxed volumes fell by about 23%, equivalent to 8.3 million 700 ml bottles, while an industry-backed study estimates that untaxed products account for 30%-40% of consumption.
Higher duty, lower revenue
Romania’s sharp increase in spirits taxation has failed to raise government receipts as the volume passing through the legal market contracts. In the first six months of 2026, the state collected 587 million lei in excise duty on spirits, according to data presented by the producers’ and distributors’ association Spirits România. That was about 6 million lei below the 593 million lei collected in the corresponding period of 2024.
The decline came even though the excise charged per litre was 26% higher than in 2024, an increase of approximately 4.5 lei. Spirits România’s calculations indicate that taxed volumes fell by about 23% over the same comparison period. In standard 700 ml bottles, the contraction represents roughly 8.3 million bottles no longer recorded in the taxed market. The figures do not establish that all this demand moved into illegal channels: higher prices may also have reduced consumption. Industry representatives, however, argue that illicit production, smuggling and counterfeit products are capturing part of the displaced trade.
Untaxed supply already holds a large share
A Roland Berger study published in October 2025 estimated that untaxed spirits represented 30%-40% of Romanian consumption. The associated annual loss to the state budget was put at €45 million-€65 million. Products sold outside regulated supply chains also avoid the quality and traceability controls applied to legally marketed drinks, adding a consumer-safety issue to the loss of tax revenue.
Earlier tax changes offer contrasting evidence. Playtech reported that a 34% excise increase in 2013 was followed the next year by an approximately 20% fall in taxed consumption. Excise receipts increased by only 9%, while untaxed consumption rose by about 10%. After the duty was cut by 30% in 2016, industry data indicate that the untaxed market shrank by approximately 25% and state revenue doubled over the following six years.
Producers seek a different tax formula
Spirits România has proposed linking duty more closely to the amount of pure alcohol in each product, narrowing differences in the taxation of beverage categories and introducing predictable adjustments based on average consumer-price movements. The association estimates that its reform could generate an additional 3.6 billion lei for the budget by 2030. That projection is an industry estimate rather than a government forecast.
The stakes extend beyond tax collection. According to the Roland Berger study, the spirits sector contributed nearly €1 billion to Romania’s GDP in 2024 and supported about 23,400 jobs. Of the economic contribution, approximately €520 million came directly from production, distribution and sales, €247 million was indirect and €199 million reflected induced effects elsewhere. The employment total included 9,200 direct jobs, almost 9,800 positions supported in agriculture, logistics, marketing and construction, and another 4,400 in related fields. For legitimate producers, distributors and importers, the shrinking tax-paid market means weaker competitiveness against unregulated supply even as the duty on every declared litre rises.
