The minister said the elimination of the special construction tax introduced last year will be RON1 billion, while the elimination of the additional excise on fuels will deprive the state budget of RON2.7 billion.
Romania’s parliamentary parties held talks Thursday ahead of an extraordinary parliament session to reexamine the Tax Code, which the head of state refused to sign into law saying tax cuts alone, not coupled with improved tax collection and sustainable public spending, would create deficits and imbalances that would hinder economic growth.
Parties proposed a gradual VAT rate cut from a current general rate of 24% to 20% as of January 2016 and to 19% as of January 2017. Romania lowered the VAT rate on food items to 19% in June.