Romania aims to exceed in maximum 10-12 years the average GDP per capita in the EU.

By 2019, the authorities want the country to have the most relaxed tax policy in the EU, said Finance Minister Darius Valcov, cited by local Economica.net.

The state will use the money resulting from fiscal relaxation measures to cut the VAT from 24% to 20%, respectively from 24% to 9% for meat products, vegetables and fruits, no later than the end of the year.

Romania will not be able to apply the progressive taxation in the next two years.

As for the fiscal relaxation plans, the starting point will be the EUR 8 billion that will go into the economy by 2020.

Between the second half of 2015 and 2016, Romania will apply fiscal relaxation measures that amount to a gross impact of EUR 3.59 billion, according to Valcov.

Between 2017- 2019, the net effect will be of EUR 7.4 billion.

editor@romania-insider.com