Excise duties and VAT will be cut before 2016, Fin Min says

The excise duties and the VAT will be cut before the end of this year, ahead of the schedule announced by the new fiscal code draft law, so that people do not postpone consumption, especially in November and December, which are peak months, Finance Minister Darius Vâlcov said on Thursday, Mediafax informs.

“There are two measures: cut of the VAT and the excise duties cuts, which I tell you for the first time, these decisions will not wait for January 1, 2016, in order to avoid creating a gap in November and December when consumption is usually higher. We do not want people to postpone consumption to expect lower taxes as from January 1. (…) I hope that by the end of May and beginning of June the codes are adopted by Parliament and not fundamentally changed,” said Vâlcov.

The Finance Minister added that fiscal loosening designed for the next 5 years envisages Romania’s development during the next 12 years, the goal being to surmount the EU average level of GDP per capita. “We want Romania to exceed in 12 years the EU average of GDP per capita. This can’t be done without sustained economic growth. The average growth of 3% in recent years is not enough to close the gaps,” said Vâlcov.