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The new governance program to eliminate planned VAT cut to 5% provision for food

de A.C.
Luni, 22 decembrie 2008, 10:15 English | Top News

The first version of the governance program, published last week contained the promise of the two parties forming Romania's new governmental majority, the Democrat Liberals and Social Democrats to cut VAT from 19% to 5% for basic food products. However, the last version of the program eliminated this promise, confirming thus the information that the state's budget is vulnerable to the economic crisis.

The two parties deleted from the governance program the provision regarding the VAT tax and increased the tax for luxury products to 25% declaring that a small VAT rate is still possible for certain products.

The flat tax for revenues is maintained for 16%  with compensations for those with small revenues.

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