President promulgates tax codes, VAT cuts effective as of January 1

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President Klaus Iohannis on Thursday, the last day of 2015, signed the promulgation decree of the new reglementations regarding the Tax Code and the Fiscal procedure Code, passed by Chamber of Deputies in the last session on December 22. They codes will come into force as of January 1. The emergency ordinance 50 was adopted in the end of Victor Ponta’s premier mandate.

The new Tax Code, 2016 brings along price cuts on products and services following VAT decrease to 20 percent, and in some cases to 9 or 5 percent, the dividend tax cut, but also brings tax rises on houses and plots of land.

The VAT tax from 24 %to 20% should lead to prices going down by 3.33 pc.

The VAT will also decrease from 9 pc to 5 pc for cinemas, museums, book houses, manuals, newspapers and magazines, while the same level will be applied to sport and cultural events; they now are taxed with 24%.

A 9 pc VAT will also go for medicines, hotesl, food, restaurants and catering, as well as for the water supply.

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