Parliamentary parties agree on VAT cut to 20pc as of next year, 19pc starting 2017. State budget draft ready by November 15

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The Social Democrat interim president Liviu Dragnea said at the end of the parliamentary parties’ meeting on the Tax Code that the VAT cut in steps was agreed as before during the previous technical discussion last week. So, VAT will decrease to 20 percent as of January 1, 2016 and to 19 pc as of January 1, 2017.

Dragnea said that the discussions with the leaders of the parliamentary parties started under the sign of responsibility and precaution so that the budgetary deficit target under 2 pc out of GDP should be met both through the Tax Code and through the 2016 state budget.

PSD interim chairman pointed out that a political consensus was needed so that the Tax Code should not be amended anytime the ruling is changing and it could be predictable for the business environment.

The so-called ‘pole tax’ on the energy infrastructure will be scrapped starting January 1 2017, except for special agricultural constructions, for which Agriculture Minister Daniel Constantin asked an early exemption from 2016.

Moreover, Dragnea revealed that it was agreed that the super-excise on fuels be eliminated on January 1 2017 and taxes on dividends will be reduced to 5pct starting 2017.

Dragnea also said that the ruling coalition and the opposition agreed that the Government should table the 2015 state budget draft by November 15 and that they should cooperate on it as they did in the Tax code’s case.

In his turn, UNPR president Gabriel Oprea said the Thursday’s dialogue proved to be constructive, while things “were going to the conclusions agreed at the parties’ technical discussion”.

The Liberal co-president Alina Gorghiu also stated the dialogue was a cautious one, expressing content that the parties had come to terms on the topic. In her opinion, the good part is that VAT cut to 20 pc starting 2017 and to 19 pc as of 2017 was agreed on.

She also mentioned she had informed president Klaus Iohannis regarding PNL’s mandate.

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