The negative impact of the measure on budget revenues will be offset by increasing excise duties on alcohol and applying excise taxes on luxury goods, also starting September.
The government expects to collect extra RON300 million following excise increases and the application of new taxes.
On the other hand, employers in the alcohol industry warned Tuesday that raising excise duties on alcohol will increase alcoholic drink prices by 25% to 40% and tax evasion will skyrocket to 90% from about 70% currently.
Excise taxes on alcohol are to climb 33% from EUR750 per hectoliter to EUR1,000/hectoliter.
Prime Minister Victor Ponta said International Monetary Fund experts approved lowering the VAT on bread although they still doubt the measure would reduce tax evasion in the bread industry. (EUR1=RON4.3907)