Romanian SocDem leader criticizes split VAT system for state companies

The decision to apply the split VAT payment only for state-owned companies and firms that are in contractual relations with the state next year is “worse” than introducing the measure for all companies as decided by the Government, Social Democrat leader Liviu Dragnea said yesterday, reports local Hotnews.ro. The Senate’s budget committee approved this amendment on Tuesday. For the rest of the companies, the split VAT payment will be optional in 2018 and will become mandatory only in 2019 if it proves operational, the senators decided. The committee’s members “have been inspired by Italy and do not realize the effects of such a measure,” Dragnea said. The PSD leader said that the parliamentary majority has been built to support the government, not to block it. Dragnea directly attacked Social-Democrat senator Eugen Teodorovici, the president of the budget committee, saying that this position has probably disturbed him very much. The committee led by Teodorovici also voted to cancel two other measures decided by the Mihai Tudose cabinet, namely increasing the fuel excise and the social contributions for part-time work contracts. editor@romania-insider.com