The Senate decided on Wednesday to maintain the law regulating the VAT at 5% for basic food products after it rejected the reexamination request formulated by President Basescu. The request was also rejected by the Budget Committee of the Senate that issued a rejection report, accepted with 53 votes for and 46 votes against.
The initiative came from the Social Democrats and Liberals and was adopted by the Chamber of Deputies on October 19, 2010. Among Democratic Liberals who voted for the law were ministers Elena Udrea , Ioan Botis and Gheorghe Ialomitianu.
The main article in the law saw a 5% VAT for basic food products like meat, bread, milk, vegetable oil and sugar. After the law was adopted in the Parliament, President Basescu formulated a reexamination request on grounds that a VAT cut will diminish budgetary revenues.
