IMF Mission Head, Romanian Pres Talk On VAT, Pension Tax Exempt

During a discussion two days ago, Basescu let on that he will take measures to correct the situation, since the two laws passed are against the terms of the agreement inked between Romania and the IMF, Franks said.

Government sources told MEDIAFAX Thursday that prime minister Emil Boc assured the IMF the situation would be solved quickly.

The Romanian parliament passed Tuesday a law by which the value added tax level is decreased to 5% for staple food. Also Tuesday, lawmakers passed a bill whereby pensions lower than 2,000 lei (EUR1=RON4.3083) are exempt from taxation.

The bills will now be sent to the president, for promulgation. Friday morning, Basescu said he didn’t receive the normative acts yet.

The government believes the two laws are in disaccord with the Fiscal Strategy already conveyed to the Parliament.