Gov’t intends to cut in June the standard VAT rate to 20 pc or the VAT for basic foods to 9 pc


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The government plans to decide in April the cut, starting in June, of the value added tax (VAT) and whether the standard VAT rate is to be reduced from 24% to 20%, or the VAT on basic foodstuffs from 24% to 9%, Prime Minister Victor Ponta announced, informs.

The prime minister stressed that regardless of the decision expected in April, “from January 1 certainly the standard rate and the VAT for foodstuffs will be reduced.”

He initially said that “it’s 99 percent certain we can reduce the VAT from April”, but the negotiations with international financial institutions have to be considered.

Subsequently, answering the media requests to clarify, Ponta said that in April it will be decided if the VAT is to be reduced six months earlier as compared to the original deadline of January 1, 2016.

“It might be sooner, but certainly one of the two measures we can afford following the data from the first semester. We just need to analyse and take an economic decision for the benefit of the society as a whole,” Ponta said.

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