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Romanian Opposition Wants VAT Cut To 19% To Vote On Draft 2012 Budget

Romanian opposition Social Democratic Party leader Victor Ponta said Monday the Social Liberal Union will vote on the draft budget for 2012 only if social security contributions are cut by 10% and the value added tax to 19%.
Romanian Opposition Wants VAT Cut To 19% To Vote On Draft 2012 Budget
Ioana TudorOana Gavrila
24 oct. 2011, 14:24, English

Ponta said USL (a political alliance made up of social democrats, liberals and conservatives) wants to have the measures included in its economic program adopted, or it will not vote on the draft budget for next year.

According to Ponta, the economic plan drafted by USL states, among others, the reduction of social security contributions by 3 percentage points, or 10%, cutting the VAT to 19%, lowering goods and service spending by 50% and suspending the National Program for Infrastructure Development run by the Ministry of Development, whose projects are worth an estimated EUR4 billion.

Ponta pointed out that, if any of the measures included in the opposition’s program is left out of the draft budget, USL will vote against the normative act.

He added the respective measures will contribute to increasing next year’s state budget by up to 1% of the gross domestic product. If they are not considered, Romania will register a budget deficit of over 3%, highlighted Ponta.