VAT reduction not an option says finance minister

Government has no intention to reduce the VAT, not even for food products, Romanian finance minister Gheorghe Ialomitianu said this Friday. He added that if any tax cuts will be operated, the priority will be to reduce the social security contributions.

Ialomitianu explained that he doesn’t want to find himself in the position of the Hungarian finance minister who a few months after cutting several direct taxes was forced to hike the VAT to the 27 percent record level.

His announcement comes a day after Valeriu Tabara, the Romanian agriculture minister said that VAT for food products should be reduced to 10 percent as this would generate price cuts and help fight evasion.

Simona Bazavan

Read more about

Air Show in Bucharest on Saturday for Aviation Day: dozens of military aircraft to fly over Aviatorilor Square

read more