The Tax Code stipulates a standard VAT cut from 24% to 20% starting 2016 and to 18% starting 2018 and a VAT cut to 9% on meat, fish, milk, eggs, fruit vegetables and live poultry and livestock starting 2016.
The bill also changes the tax regime for micro-enterprises and gradually raises the turnover thresholds for the micro-enterprises category, from the current equivalent of EUR65,000 to EUR75,000 in 2017, EUR85,000 in 2018 and EUR100,000 in 2019.
The bill also lowers the profit tax rate from 16% to 14% as of 2019, and introduces social security taxes on all types of income starting next year.