Fiscal Council – negative notice on 9 pc VAT for services of retransmission of television programs through electronic communications networks
The Fiscal Council has given a negative notice on the extension of the reduced VAT rate of 9% to retransmission services of electronic communications network television, said in a report submitted on Tuesday by the head of the institution Ionut Dumitru (photo). The provisions of the draft legislation would come into force on July 1, 2015. Explanatory reasons provide the argument that ‘the application of a reduced VAT rate for these services will generate significant positive effects by improving the flow of cash flow,’ the document reads. In Fiscal Council’s view, the argument is questionable, given that reducing a consumption tax in a branch where no VAT tax evasion is recorded cannot generate cash flow pluses, only to the extent that it is not transferred into the final price to the consumer.