Georgescu said small firms with turnovers of several tens of thousands of euros could be exempt from paying VAT. He also said the government that will be formed after the parliamentary elections due in fall might reduce the VAT on food products, following an analysis on the financial, economic and social impact of such a measure.
Prime Minister-designate Victor Ponta has recently said Romania must reduce the VAT on farming products, adding this measure will be included in the 2013 state budget draft “at the latest.” Former agriculture minister Stelian Fuia, in turn, said lowering the VAT on food products could reduce tax evasion, but will not decrease shelf prices.
Romania’s joint Parliament committees on Monday endorsed Georgescu for finance minister and deputy prime minister, with 28 votes for and six against.
Georgescu, first deputy governor of the central bank (BNR), was finance minister between 1992 and 1996.