The government weights the possibility to cut VAT to 19% and tax all pensions, Labor minister Mihai Seitan declared on Monday. We are currently evaluating the financial data supplied by the Finance ministry, the minister said.

On Saturday, PM Boc said that a tax on pensions cannot cover a VAT decrease from 24% to 19% and other measures are needed to supplement revenues to the state. Boc said that if the government figures out a solution, instead of the VAT increase and if the Parliament adopts the measure, then the government will implement it.

President Basescu declared on Friday for the national public television that the VAT increase was a mistake and a tax on pensions would have been preferred. He said that he will urged the govenrment to decrease VAT.