The government has not yet received the nod from the International Monetary Fund to cut VAT on food, said Ponta, adding that the measure might first be applied for bread.
Ponta said in January, after talks with the IMF, Romania might apply starting July 1 a pilot-project to cut VAT on bread to 9% if budget revenues increase so as to be able to cover a RON200 million deficit the measure would trigger.
If at the end of the year analyses show the VAT cut curbed tax evasion and generated higher revenues, the measure might be extended to include more foodstuffs starting 2014, Ponta said. (EUR1=RON4.4154)