Romania’s tax agency ANAF collected RON 1.2 billion (EUR 265.5 million) less than expected in the first quarter of the year, namely it achieved 98% of its program, the ANAF president Bogdan Stan said in a press conference yesterday.

Compared to the first quarter of last year, revenue collection increased by 1.3% in the first three months of this year, Stan added, reports local Hotnews.ro. In March, the taxes collected were 5.2% higher than in the same month of 2016.

“We are still trying to recover the deficit in January, caused by the drop in the VAT rate from 24% to 20%,” the ANAF president said.

The VAT rate dropped from 24% to 20% one year earlier, at the beginning of 2016.

ANAF collected RON 32 billion (EUR 7 billion) to the state budget in the first two months of this year, down 0.9% compared to the same period last year.

This year’s state budget is based on an economic growth of 5.2%, an inflation rate of 1.4% and a net average salary of RON 2,274 (EUR 504). The budget revenues for this year are estimated at RON 254.7 billion (EUR 56.6 billion), or 31% of the GDP, up by 14% compared to 2016.

editor@romania-insider.com