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Romanian President Traian Basescu Says Won’t Sign Tax-Lowering Bills Into Laws

Romanian President Traian Basescu said Monday evening on public television that he won’t sign into laws the bills lowering VAT on food and exempting small pensions from income tax.
Romanian President Traian Basescu Says Won’t Sign Tax-Lowering Bills Into Laws
Liliana Micu
02 nov. 2010, 09:38, English

Basescu said he doesn’t believe ruling power lawmakers voted in favor of the two bills by mistake, adding, however, he will undo the mistake. The head of state also said he assured IMF officials Romania will make no changes in its taxation system, stressing he won’t not sign the bills into laws and will send them back to Parliament.

The Parliament’s lower chamber recently passed two draft laws that had been previously rejected in the Senate, one setting the value added tax on basic foods, such as bread, milk, meat, sugar and vegetable oil, at 5% instead of 24%, and another exempting pensions lower than RON2,000 from income taxes.

People close to the matter told MEDIAFAX the head of state promised the International Monetary Fund he would not sign the bills into laws and would send them back to Parliament.

Joint teams from the IMF and the Commission visited Bucharest from October 20 to November 1 to review the country’s progress under a EUR20 billion loan package.