Romania Passes Scaled-Down Tax Cuts After Warnings Over Budget
- Parliament backs reduction in VAT to 20% starting in January
- Plans to abolish other taxes now postponed until 2017
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Romania passed a package of tax cuts that was scaled down after the central bank and international creditors warned of risks to budget stability.
Lawmakers in Bucharest voted 279 to 8 in favor of the bill, which includes a reduction next year in the value-added tax to 20 percent from 24 percent. Previously approved plans to change or scrap five other levies, a move that had been opposed by the International Monetary Fund and the European Union, were delayed to 2017 to contain the budget deficit.