Ilie Bolojan and Nicușor Dan at the PHOTO Oath of Oath: Inquam Photos/ Octav Ganea
Increasing the standard value of value added tax (VAT) from 19 to 21% was the only short-term solution to make income quickly without later necessary to affect people, said Ilie Bolojan asked in an Antena3 show how to convince President Nicușor Dan to accept this growth.
VAT growth has generated a conflict during negotiations for the formation of the government between the prime minister and the president. Bolojan wanted the growth, while Dan took care. Nicușor Dan gave in writing during the campaign for the presidential elections that the general quota of VAT will not increase. Through the first package of measures that the Government will adopt by assuming liability in Parliament, the standard VAT rate increases from 19% to 21% from August 1.
“At the installation of this government, the president, rightly, asked me to do everything we can not to increase the taxes and manage the deficit by decreases of expenses and stages. Between this desire and the reality of the markets, with the European Commission, with the budget reality, it was a very big difference. through which you can make income quickly without going directly into the pocket of a man but generating taxes that will affect people, ”explained the prime minister.
He acknowledged that Romanians will be affected in the first instance by VAT increase to 21%, but stressed that if there were no fast measures, there is a risk that the Government would have to increase VAT in 24%.
“A part will be seen in the prices that Romanians will pay. It was the only package and the only possibility that in the short term you should show that you work on structural incomes that increase the budget income and affect the least,” said the prime minister.
Asked how he characterizes the relationship with President Nicușor Dan, Bolojan replied that he is “a relationship of collaboration and respect”.
How VAT has been modified
- Increase of the standard share from 19% to 21%;
- Elimination of the application of the reduced quota of 5% and the application of a reduced quota of 11% for the operations currently subjected to the reduced quota of 5%, respectively for: the delivery of school textbooks, books, newspapers and magazines, the services consisting of access to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, the delivery of thermal energy in the cold season, intended for certain categories of consumers;
- Increased VAT reduced quota from 9% to 11% for a narrower range of goods and services, respectively for: medicines for human use, foods for human consumption, with certain exceptions, water for irrigation, fertilizers and pesticides, water supply and sewerage services, buildings intended to be used as old children's homes, handicap, accommodation and restaurant/catering services.
