Romania’s Senate Chairman Asks Ombudsman To Challenge Constitutionality Of VAT Hike

In the notice forwarded to the Ombudsman, Geoana argued that the ordinance represents a power abuse and breaches the principle of legality. Geoana also maintained that the measure violates the Fiscal Code, which can only be amended by a law.

Geoana added that the effects of the ordinance contravene article 47, section 1 of the Constitution, according to which authorities must "ensure a decent living standard for its citizens."

The opposition social democrat blamed the Government for not researching the macroeconomic impact of the tax hike and disregarding all the other proposed solutions to the recession. The Senate chairman claimed the VAT increase will infringe on the principle of fiscal equity, by exerting "unbearable pressure on taxpayers."

Social democrat deputies also filed a complaint with the Ombudsman against the allegedly unconstitutional ordinance, party spokesperson Olguta Vasilescu said Thursday.

Romania's government decided Saturday to raise the value added tax level to 24% from 19% starting July 1, in an attempt to boost revenue and reduce the budget deficit. The move aimed to compensate for a planned 15% cut in pensions, which was ruled unconstitutional by the country's highest court.

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