The Romanian Central Bank (BNR) governor Mugur Isarescu (in picture) said the value added tax, set at 24 percent, will remain unchanged “at least for a few years”. Isarescu stressed out that the country will face fiscal instability unless the sales tax is kept at the current level, he said in a TV interview on Sunday.

Romania raised the VAT level to 24 percent  from 19 percent, aiming to compensate the annulment in court of a 15 percent cut in pensions and ensuring the continuity of its EUR 13 billion loan agreement with the IMF. The VAT hike is part of the Government's austerity pack aimed at boosting revenue and reducing the budget deficit.

Mediafax