The minister stressed he does not want to end up facing the situation of Hungarian finance minister who had to increase the VAT to EU’s record high of 27%, a few months after cutting several direct taxes.
Agriculture Minister Valeriu Tabara on Thursday said Romania should reduce the VAT on farming products from 24% to 10%, to lower food prices and prevent tax evasion.
“A VAT of around 10% would eliminate tax evasion,” said Tabara, adding the Government should reconsider the level of VAT and excise duties on farming products.
Subsequently, Prime Minister Emil Boc said the reduction of VAT for farming products is not an issue for the Government to discuss right now. In March 2011, Boc said reducing VAT on basic foods was unsustainable and that specialists argued it would not lead to lower food prices.