Prime minister Ilie Bolojan on Monday evening stated that it is "very likely " the reset of VAT, from the 5% rate to 11%, to generate an increase by a few percentage points in district heating prices, while noting that the granting of subsidies will be decided by the city halls.
"It is very likely that, due to the reset of the VAT, from 5% to 11% as of August 1, to generate an increase in district heating prices of several percentage points. It is very possible that this will happen. As for the granting of subsidies, this is the policy of each administrative-territorial unit, that is, of each large city in Romania, and here the Government does not intervene to reduce or cancel them," Bolojan told B1 TV private television channel.
He said that it's necessary to ensure that the energy system and large district heating systems operate under normal conditions, so that there are no major problems.
"But, if we are to be fair to Romanians, this VAT increase will mean a slight price increase. Of course, city halls, local councils can, through the measures they adopt, increase subsidies, reduce subsidies, influence these tariffs that citizens of large cities pay for heating in centralized district heating systems," the prime minister said.
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