The minister added that the new Tax Code draft has three positive stipulations for agriculture: VAT decrease on meat, fruits and vegetables, the tax exemption for farm machinery and the scrapping of special constructions tax.
Romania’s government plans to lower the value added tax from 24% to 20% as of next year and to 9% on food items such as meat, fish, fruits and vegetables, according to the country’s new Tax Code draft.
The government plans to lower the VAT even further, to 18%, as of January 2018.
For 2016, revenues to the state budget are estimated to drop by RON11.6 billion but revenues from VAT, social security contributions and income tax are estimated to grow by RON6.4 billion, resulting a net impact on the state budget of RON5.2 billion.