Prime Minister Marcel Ciolacu reiterated on Monday that the VAT will not increase, stressing that through further streamline of public spending and better revenue collection the commitments negotiated with European Commission representatives on the fiscal plan to down budget deficit will be met.

He was asked by journalists whether taxes will increase next year, taking into account that the fiscal plan to reduce the budget deficit presented to the European Commission mentions „revising the taxation basis for the income, profit and added value tax.”

„I beg of you, please stop! There is not VAT increase. I am telling you, I will tattoo it on my hand ‘There will be no VAT increase!. No flat tax increase. How much is the flat tax in Romania? Next year we have two things: it must and has been negotiated – 2.5 percentage point of the GDP higher revenues were needed and we negotiated only 1.1 percentage points. It is sustainable, as this can also be done by reducing spending and from a better collection, taking into account that we are getting closer with digitisation, as well as with an improved management of public spending. I reiterate, at least in the healthcare area, and I would also like in the education area, where there is the biggest expenditure in Romania at the moment, to have centralised acquisitions, coordinated by the Finance Ministry. A syringe must cost the same in Cluj and in Buzau,” Ciolacu said.

The prime minister pointed out that no government increases the VAT as it has a minimum impact in terms of collection to the budget, when asked if the reduced VAT quotas, from 5% and 9% to 19%, is under consideration, in other situations than those of the VAT for medicine and food-stuffs.

In context Ciolacu said that labour taxation should be lowered for small and average incomes, particularly for youth under 26.

AGERPRES