Prima pagină » English » Romanian Pensions Must Be Taxed, VAT Reduced – President

Romanian Pensions Must Be Taxed, VAT Reduced – President

Romania’s President Traian Basescu said Saturday, during a visit to flood-hit areas in the northern part of the country, that the value added tax must be decreased to its previous level, adding pensions must be taxed.
Romanian Pensions Must Be Taxed, VAT Reduced – President
10 iul. 2010, 17:12, English

Basescu said recently on the public radio that he hopes the Government would not resort to a new VAT hike in January 2011 without first taxing all types of income, including pensions.

Basescu said he does not agree with the Government’s decision to raise the VAT, adding the measure was a mistake, as it does not tackle budget problems, especially those regarding wage spending and social spending, which are the state budget’s „malign” spots.

The Government decided to hike the VAT from 19% to 24%, as an alternative solution to increase budget revenues, after the Constitutional Court ruled unconstitutional some provisions included in the country’s first austerity plan, which had been pushed through the Parliament.