IMF: Romania should consider compensations for VAT cut

Romania’s Government should reconsider the moment when adopting tax cuts, as well as their size, said Andrea Schaechter, head of the International Monetary Fund (IMF) mission in Romania. The state needs to consider compensatory measures to meet medium-term fiscal targets, she said. “The budget deficit target is currently in line with the target set in the stand-by agreement, and for any additional tax cuts, the state needs to consider compensatory measures for these budgetary targets, which are a priority and have to be met,” said Schaechter, cited by local Agerpres. Last week, Prime Minister Victor Ponta said the Government will analyze in April the possibility to cut the VAT starting this year. The measure is likely to come into force on June 1, six months earlier than in the original bill. editor@romania-insider.com