Two major fiscal changes are taken into account for next year, according to the Romanian Finance Minister Daniel Chitoiu.

The authorities are considering reducing the VAT to 19 percent, from the current level of 24 percent, but a 5 percent cut of the social security contributions is also possible, starting January 1, 2014. However, the decision for one of the two measures will be taken in the second half of this year, based on the impact they will have on the economy.

The Finance Minister also stated that one of the fiscal measures to be taken from July 1, 2013, is reducing the VAT on bread to 9 percent, from the current 24 percent.

In Romania, the VAT was raised from 19 percent to 24 percent in 2010 as a measure to increase budget revenues during the economic crisis.

Irina Popescu, irina.popescu@romania-insider.com