Ponta added the sales tax could also be reduced to 9% in the meat sector.

The Ponta Cabinet’s new governing program stipulates the widening of the taxation pool, the reduction in VAT for basic foods, the return to 19% sales tax and the cut in social security contributions, if the fiscal-budget framework allows it.

End-December 2013, Ponta said the government will look into lowering the sales tax on food products other than bread only after July 1, 2014.

In October 2013, then-agriculture minister Daniel Constantin said the VAT will likely be lowered to 9% in the meat sector in 2014, and further VAT cuts would afterwards be possible for vegetables, fruit and milk.

Romania lowered the sales tax of 24% to 9% on bread as of September 2013 and raised excises on alcohol and luxury items to compensate for the cut.

Subiecte #GOVERNMENT#VAT