Romanian PM: Government to decide on VAT cut today

The Government will make a decision on the VAT cut today, April 7, said Prime Minister Victor Ponta. He talked on Monday, April 6, with the Romanian National Bank governor Mugur Isarescu about options for VAT reduction. Ponta told his Social Democratic Party colleagues that the Government plans to decrease the VAT standard rate from 24% to 20% starting June, but it will make its decision today, reports local Agerpres. The measure will not reduce the effective collection, but rather the difference between what the law provided and what the state collected, said the Prime Minister. A strong tax authority and the VAT reduction will help decrease tax evasion, he added. editor@romania-insider.com