Romanian PM: President agrees with VAT rate cut to 20%

Prime Minister Victor Ponta said on Wednesday that he hoped that the political leaders and the Parliament would consider the Government’s “technocratic opinion” and approve the new Fiscal Code next week. It’s important that the “political fight” ends and that the Romanian President Klaus Iohannis approves and enacts the Fiscal Code, Ponta added, reports local Wall-street.ro. The PM, who considers himself a technocrat, believes that it’s important to send the essential message for the economy, by cutting the VAT rate from 24% to 20%. He also said that President Klaus Iohannis agreed with the VAT rate cut to 20%, but suggested that the other tax cuts included in the new Fiscal Code be postponed. Ponta met Iohannis on Wednesday to talk about the Fiscal Code. The President rejected the Fiscal Code last month and asked the Parliament to review it due to its high impact on the state budget. Romania’s National Bank Governor Mugur Isarescu also criticized the amplitude of the fiscal relaxation measures included in the new Tax Code. editor@romania-insider.com