PM Ciolacu: EC asked for a decision on VAT rates, we agreed on 9pct VAT on food, medicines, prostheses
Prime Minister Marcel Ciolacu on Friday said that in his discussions with the European Commission, the commission told the Romanian government that "there must be order" in VAT rates by repealing the exemptions currently in place in several sectors, agreeing, in principle, that the VAT on food, medicines, medical devices such as prostheses, should be set at 9%, told Agerpres.
He was asked by journalists on Friday, after a visit to the Olympic Sports Complex at Izvorani, if the Social Democratic Party (PSD) supports an increase in VAT on certain categories of products and services.
"What I can tell you is that in my discussion with the European Commission - and they are right - there must be order, you cannot come up with seven types of VAT, just make up your mind! And we agreed that 9% remains the VAT on food, medicines, prostheses. Sorry, why is there 5% VAT for clubs, is that normal? There are far too many exceptions in Romania. Not only the European Commission talked about them, all the financial fora talked about them. What do we want? To lose all the European funds and for Romania to collapse? I will not do that, regardless of what voices come up on television, in the press, wherever you want. And I will explain very clearly why that must be done. Naturally, after I make a decision," said Ciolacu.
He added that discussions on the taxation package intended to be adopted by the government will continue next week at the level of the leaders of the governing coalition. He was also asked about repealing tax incentives in place for several sectors, namely construction, agriculture, the food industry and IT.
"We will continue the discussions. From Monday, we will have these discussions with Mr Chairman [of the National Liberal Party (PNL)] Ciuca", said Ciolacu.