Romanian PM: Government supports VAT rate cut to 19% this year

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. The cut should be applied before January 1, 2016. He also said that the drug prices will go down by 20% starting July 1. Health Minister Nicolae Banicioiu and Finance Minister Eugen Teodorovici visited Ponta in Turkey, where the Prime Minister went for a knee operation. They discussed the VAT cut and the drug price reduction, Ponta said. At the beginning of the month, the National Anticorruption Directorate DNA accused Ponta of conflict of interest for naming his friend Dan Sova minister in his cabinet in 2012, as Ponta worked with Sova’s law firm in 2007-2008. However, the Chamber of Deputies rejected on June 9 DNA’s request to waive Ponta’s immunity and green-light a corruption investigation on him. Romanian MPs could vote Fiscal Code without VAT cut Romanian MPs extend VAT cut to draft beer Romanian Government cuts VAT on food to 9% Romanian Government detonates “fiscal nuke”: major tax cuts in plan editor@romania-insider.com