Romania’s Chamber of Deputies voted on June 24 the Fiscal Code and the Fiscal Procedure Code, with 306 favorable votes, 2 votes “against” and one abstention.

The new Fiscal Code includes the VAT rate cut from 24% to 19% starting January 1, 2016. This measure will impact the budget revenues by some EUR 2.6 billion, said Finance Minister Eugen Teodorovici, cited by local Mediafax.

Romania moves from one of the highest VAT rate in Europe to one of the lowest, Teodorovici added.

The measures included in the new Fiscal Code will generate a higher budget deficit than the level Romania agreed with the IMF, European Commission and World Bank, which is 1.2% of GDP.

However, the deficit will stay under the one set in the Maastricht criteria, namely 3%, according to the Finance Minister.

editor@romania-insider.com