Romanian FinMin speaks of cutting all tax breaks and lower VAT rate for food goods

Finance minister Marcel Bolos argued for cutting all the allowances provided to employees, including in the sectors of IT, construction and agriculture, saying that all economic sectors are essential, Jurnalul.ro reported.

According to Digi24, he also came up with the idea of lowering the VAT rate for staple food goods as part of a combined strategy to lower the shelf prices.

“We are supporting investments and stimulating investments through tax incentives for the private sector. Therefore, we must change this paradigm and move towards granting tax incentives for investments in the private sector [rather than allowances given to employees],” Marcel Bolos stated.

Currently, employees in selected industries (IT, construction, agriculture and food processing) are waived from paying income tax.

But it is not clear whether such ideas,consistent with the principles of his Liberal Party (PNL), are actually backed even by Minister Bolos’ party fellows, not to mention the Socialist Party (PSD) that seems to have the final word as the senior ruling partner.

(Photo source: Gov.ro)