Romania Senate OKs 5% VAT Cut For Basic Food

Romania’s senate on Wednesday approved a 5% cut of the value added tax for basic food – bread, meat, milk, vegetal oil and sugar.

1 view

The act, adopted with 44 votes in favor, 16 against and 16 abstentions, amends Law 571/2003 on Romania’s Fiscal Code.

The funds to cover the VAT cut would come from a 50% rise of the excises for yachts, other leisure ships and vessels, private aircraft and choppers and for related engines over 25 HP.

Additional funds will come from higher excises for tobacco, natural fur textiles, crystals, gold jewelry, perfumes, weapons and hunting weapons etc.

The Romanian lawmakers also set a 19% tax on operations which are not tax-free or subject to reduced quotas of 5% and 9%, respectively.

In addition, the act stipulates a non-taxable ceiling from pension-related incomes at 1,500 lei (EUR1-RON3.6579).

The act is pending debates in the Chamber of Deputies, which is decisional chamber in the matter.

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.