The VAT Rate Cut From 24% to 19%, "Starting January 1, 2016"

The Budget Commission within Romania’s Chamber of Deputies unanimously approved on June 22 the new Fiscal Code, which includes the VAT rate cut from 24% to 19% starting January 1, 2016.

Finance Minister Eugen Teodorovici said that analyses show that such a measure will have good effects in the economy, reports local romania-insider.com.

Already the opposition said it is favorable to the new VAT rate, "unless the budget income do not allow".

Prime Minister Victor Ponta announced on June 21 on his Facebook page that the Government will support the general VAT rate cut from 24% to 19%, and not to 20% like previously announced. He said the cut should be applied before January 1, 2016.

Health Minister Nicolae Banicioiu and Finance Minister Eugen Teodorovici visited Mr. Ponta in Turkey, where the Prime Minister went for a knee operation.

They discussed the VAT cut and the drug price reduction, Victor Ponta said.