VAT Cut Not An Option For Romania - Fin Min Off

Reducing the value added tax is not a good solution for Romania, as it will not lower prices, but it will have a negative effect on the predictability of the fiscal framework, Finance Ministry state secretary Dan Lazar said Thursday.

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VAT Cut Not An Option For Romania - Econ Min Off

"We had to take a quick and certain measure, so we raised the VAT. Now, people talk about reducing the VAT. We believe in the principle of keeping the stability of the main taxes and cutting the VAT is not a good solution at the moment," Lazar said at a seminar organized by Ziarul Financiar daily.

According to Lazar, such a measure will "destroy" the predictability aspect of the fiscal framework.

Lazar said the Finance Ministry does not plan to change either the flat tax or the VAT.

Last year, Romanian authorities implemented a set of austerity measures and hiked the value added tax from 19% to 24%.

The Finance Ministry plans to reduce the number of parafiscal taxes to below 100 until the end of the current government's mandate, from the current 263, Lazar also said.

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