Tax reform

Tax evasion in the food industry may decrease by 30-40% after cutting VAT on foodstuffs to 9%, but it may reach almost 70% if the tax authority ANAF continues checks and increases fines, President of the National Federation of Food Industry Trade Unions "Sindalimenta" Dragos Frumosu told AGERPRES on Wednesday.

Romania will cut value added tax (VAT) for all food products to 9% from 24% starting in June, six months earlier than planned, as budget revenue is higher than expected, Prime Minister Victor Ponta has announced.

He also said the cut in VAT rate to 9% will also apply to non-alcoholic beverages and catering services.

Romania's centre-left government under Victor Ponta on Tuesday unveiled plans to cut VAT from 24 to 9 per cent for all food products, as well as on non-alcoholic beverages and catering services. The measure will come into force from June 1.

The Government will continue to support within the debates in Parliament on the new Tax Code draft the standard VAT quota being cut from 24 per cent to 20 per cent starting January 1, 2016, Prime Minister Victor Ponta said on Tuesday, in the opening of the Government meeting.

Photo credit: (c) Liviu SOVA / AGERPRES PHOTO

The Value Added Tax on food, non-alcoholic beverages and catering services will be 9 percent from June 1, Prime Minister Victor Ponta announced on Tuesday.

Photo credit: (c) Liviu SOVA / AGERPRES PHOTO

Bulgaria's Finance Minister Vladislav Goranov has ruled out proposals to introduce differential VAT rates on food products.

Speaking Tuesday at a discussion on Bulgaria's economy, he said that differentiated VAT rates were hard to administer.

He claimed that the unified VAT rate was the fairest and most neutral option as regards risks of skewing consumption trends.

The food industry employers' federation Romalimenta supports a cut of the VAT on food; it asserts the impact would be greater than that of a general VAT decrease from 24 to 20 percent.

Photo credit: (c) Alex TUDOR / AGERPRES ARCHIVE

By Prokopis Hatzinikolaou

The issue of value-added tax on popular Aegean islands has returned to the spotlight as despite the strong denial by the prime minister?s office of an increase in the rate, also citing legal problems, the government spokesman returned to the subject on Monday, telling radio station Real FM that ?this is a topic that is in open consultation.?

Prime Minister Victor Ponta said Monday that the Government will these days decide on the cuts in the Value-Added Tax (VAT).

Photo credit: (c) Liviu SOVA / AGERPRES PHOTO

BELGRADE - In the first three months of the year, the budget deficit of Serbia was lower by 2.5 times than originally planned, show the official data of the Finance Ministry.