UPDATE: Parliament sets VAT at 5% for basic foods, ruling party says vote was ‘error’, will be corrected
(Update adds details about the ruling party's declaration about the vote on the VAT reduction in the last paragraph.)
Romania’s Chamber of Deputies adopted Tuesday a bill setting the value added tax on basic foods, such as bread, milk, meat, sugar and vegetable oil, at 5 percent instead of 24 percent.
The bill, submitted by the opposition, had been previously rejected by the Senate but the Chamber passed it unanimously, with 290 votes in favor. The bill is to be sent to the head of state for promulgation. Romania's Government raised the value added tax from 19 percent to 24 percent in July, in a bid to boost budget revenue.
UPDATE: The Tuesday vote which reduced the VAT for basic foods to 5 percent was an 'error', said Finance Minister Gheorghe Ialomitianu, citing communication issues among the Democratic Liberal Party (PDL) members in the Parliament. The error can be corrected if the President re-sends it to the Parliament or if the Government issues an emergency ordinance, said Ialomitianu.
Mediafax, Romania-Insider.com
