Romania Defies EU, IMF Warnings by Pushing Through Tax Cuts
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Romania ignored warnings from international lenders by pushing through tax cuts aimed at bolstering the economy and the prime minister as he struggles to shake off a corruption scandal.
Lawmakers in Bucharest Wednesday approved a reduction in the value-added tax to 2010’s level of 19 percent. Tax cuts will cost the budget 12 billion lei ($3 billion) next year, widening the fiscal gap to as much as 2.9 percent of economic output from a planned 1.2 percent, Finance Minister Eugen Teodorovici said.