Romania’s ruling Social Democratic Party (PSD) is allegedly planning to hike the VAT from 19% to 20% in 2018, according to economist Florin Citu, who is a senator from the opposing National Liberal Party (PNL).

“There’s a decision due making in the PSD, which is being debated inside the party. It involves increasing the VAT to 20% either from mid this year, or from the beginning of 2019. The VAT hike would provide an extra EUR 650 million. Without it, the budget deficit would exceed 3%,” said Citu.

He argues the ruling party will apply the only solution it knows: it cuts expenses and brings more revenues to the budget though higher taxes.

editor@romania-insider.com