Gov’t set to approve 5pc VAT for tourism
The Government has on the agenda of the sitting on Thursday a draft bill regarding the cut of the VAT for tourism to 5% for accommodation, restaurants and catering, but also for sports facilities, amusement and recreational parks.
Prime Minister Viorica Dancila said tourism is a dynamic sector and has huge growth potential.
“The figures from the National Statistics Institute reveal the incentives, such as holiday vouchers, lead to positive results for the economy. The number of tourists accommodated in August 2018 was by almost 10% higher against the same month last year. Today we will make an important decision to support this field, by cutting the Value Added Tax to 5% for accommodation, restaurants and catering, but also for sports facilities, amusement and recreational parks,” Premier Dancila said at the beginning of the Government sitting.
The Premier added that Romania will thus have the lowest level of VAT for tourism in the European Union and that the experience of past years proves a lower VAT level leads to positive effects in the economy.