vat cut

Romanian Finance Minister Gheorghe Ialomitianu said Friday he will try to convince lawmakers not to adopt a bill that lowers the sales tax on basic food items because the measure will not lower food prices and will jeopardize the country’s budget spending.

The VAT cut for certain products, such as basic foods, will be possible after 2010, once inflationist pressure eases and Romania gets closer to the Euro area, said Romanian economy and finance minister Varujan Vosganian.