Teodorovici: VAT to decrease to 20% as of January 1st. Eliminating the tax on special constructions and the additional excise duty for fuels, delayed for 2017

Finance Minister Eugen Teodorovici announced that all parties had reached consensus for VAT decrease from 24% to 20% as of 1 January 2016, according to Economica.net. The other tax relaxation measures, including the elimination of the tax on special constructions and the additional excise duty on fuels, were postponed to 2017.  “All parties agreed to decrease VAT to 20% as of 1 January 2016. Following to take the other tax relaxation measures as of 2017, when VAT is to decrease again, to 19%. First, we need to see the effects of these first decreases”, Teodorovici stated at the exit from debates. Representatives of parliamentary parties agreed, on Thursday, in the Parliament, to decrease VAT to 20% as of 1 January 2016. One of the conditions put by the National Liberal Party (PNL) was that, with the reduction of VAT, not to eliminate the additional excise on fuel. The Tax Code was sent by President Klaus Iohannis to the Parliament for reexamination, and it would take place next week, in an extraordinary session of the Parliament.

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