Prime Minister Marcel Ciolacu said on Monday that a tax reform does not mean introducing new taxes, adding that „huge pressure” had been put on him to increase VAT, but he refused.

Ciolacu was asked at the Social Democratic Party (PSD) headquarters if Romanians will face new taxes after the four rounds of elections this year, especially since the tax reform has been postponed.

„There will be a tax reform. A tax reform does not mean that more taxes will be introduced. What I promised you and the Romanians was that I would digitise ANAF after 30-something years when no one has done it. We have, apart from the base, 12 modules already in implementation with renowned companies in this area and at the moment we have the collections we expected. We have really encouraged a lot of investment and that’s why, even though there was a surplus last month, we are trying to keep it in balance. We are not talking about new taxes and I did not raise taxes even after I became prime minister, although we had a deficit of 6.8% and an assumed deficit of 5.7% and we closed with 5.6 – 5.5%. We made some exceptions,” Ciolacu said.

Ciolacu added that he was under immense pressure to increase VAT.

„I tell you one thing, on me, as prime minister, there was a huge pressure to increase VAT and I refused this because it is totally unfair and those with income to contribute to this common effort. (…) Under no circumstances will VAT on food and medicines be increased. That would lead to an increase in inflation. When inflation is around 1% you can think about certain measures, because it is very bad to fall on the other side, but there they usually act in other areas,” said Marcel Ciolacu.

AGERPRES