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VAT for food drops to 5%

de Radu Big
Miercuri, 6 februarie 2008, 15:52 English | Top News

Romania Senate approved on Wednesday the decrease of VAT from 19 to 5% for basic food products, although the Government representatives participating in the session indicated that this would cause a budget loss of some 200 million RON (some 55 million euro). The funds to cover the loss, it was decided, will come from a 50% growth of taxes and excises for personal yachts, planes and helicopters, as well as a new growth of the tobacco taxes.

The decision was approved with 44 votes in favor, 16 against and 16 abstentions.

The VAT will decrease for bread, milk, oil and sugar. 

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