Excise taxes will be applied on yachts, luxury cars and watches, special weapons and jewels.
Excise duties on alcohol will rise from EUR750/hectoliter to EUR1,000/hectoliters, according to Finance Minister Daniel Chitoiu.
The government expects to collect extra RON300 million following excise increases and the application of new taxes.
The Finance minister said that, by cutting the VAT on bread the Government targets to reduce to half tax evasion in the bread industry, which is currently at about 80%.
Prime Minister Victor Ponta said International Monetary Fund experts have approved lowering VAT on bread although they still doubt the measure will reduce tax evasion in the bread industry. (EUR1=RON4.3994)