The bill now stipulates the value added tax rate will be lowered from a current level of 24% to 20% as of January next year and then to 19% as of 2017. It also eliminates a tax on special constructions as of 2017, lowers taxes on dividends from 16% to 5%, and lowers excise duties on fuels.
The bill was adopted 131 votes to four and one abstention and will move on to the Chamber of Deputies and then to the head of state to be signed into law.
Romanian President Klaus Iohannis vetoed the tax code before, citing concerns that proposed tax cuts would have too big an impact on the country’s budget and economy.