Romania's Fiscal Council approves VAT cut on food with ‘reservations’
The Fiscal Council has approved the draft Emergency Ordinance, lowering the VAT from 24% to 9% on food and restaurant services.
However, the Council has had certain reservations about the VAT cut and its influence on the annual and medium term budgetary targets.
The draft Emergency Ordinance estimates a budget loss of EUR 547 million in 2015, EUR 1.1 billion in 2016, EUR 1.2 billion in 2017 and EUR 1.3 billion in 2018, reads a Fiscal Council press release. The Government will use the increased tax collection to cover for these losses.
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