Romania's newly elected president says VAT hike not a priority in fiscal reform talks

Romania's president-elect Nicușor Dan stated on May 22 that increasing the value-added tax (VAT) rate is not a preferred option in the fiscal consolidation strategy currently being discussed with the caretaker government and political parties involved in forming the next executive, Economica.net reported.

"I try not to take this into account," Dan said in reference to a potential 2 percentage point increase in the standard VAT rate, currently set at 19%. While he acknowledged that the fiscal impact of such a measure has been assessed, he described it as "purely theoretical" due to its likely negative side effects, including a rise in tax evasion and reduced consumption.