“As a general principle, we don’t recommend different value added tax levels. Such a measure would lead to fiscal evasion and it wouldn’t help consumers,” Franks said at the conclusion of a review mission in Romania.
Romania’s newly appointed Prime Minister Victor Ponta said earlier this week that the government is considering reducing the sales tax rate for several food items starting with 2013.
Finance Ministry officials said a possible tax reduction would be decided after the parliamentary elections in November.