VAT collection sees significant increase in Romania in August

The VAT collection reached over RON 5 billion (EUR 1.1 billion) in August, up 20% year-on-year. By comparison the Romanian state collected RON 4.19 billion (EUR 911.8 million) from the VAT in August last year. The higher VAT revenues also pushed up the overall budget revenues, which reached RON 19.2 billion (EUR 4.1 billion) in August, up 9% year-on-year. In total, the revenues from the VAT dropped by 1.7% in the first eight months of this year compared to the same period in 2016. The consolidated state budget revenues amounted to RON 160.4 billion (EUR 34.9 billion) between January and August, up 9% year-on-year. The revenues from the income tax increased by 15% whereas those from the social insurance contributions rose by 17%. Income from excise duties dropped by 5% in the first eight months of the year compared to the same period last year. The budget expenditure reached RON 166.9 billion (EUR 36.3 billion) during this period, up 11% year-on-year. The budget deficit reached 0.78% of the GDP in the first eight months of this year, or RON 6.5 billion (EUR 1.4 billion), double compared to the same period last year. editor@romania-insider.com