The Romanian government will discuss and vote a new Tax Code on extraordinary meeting in August, after the president rejected the previous proposal. The acting Chairman of the Social Democratic Party (SDP) Liviu Dragnea announced today that the parliament convened an extraordinary session on 24 and 25 August to vote on the new version of the law. The texts will be prepared after consulations with the representatives of the National Bank of Romania.
The President Klaus Johannis refused to promulgate the newly adopted Tax Code on July 17, saying that it provided tax breaks and can lead to internal and external risks, including unsustainable economic growth.
The approved in June a new Tax Code provides a series of tax cuts, including a reduction of VAT) from 24% to 19% since the beginning of 2016, and the reduction of fees for fuel. Since From June 1, Romania has introduced a 9% VAT tax rate for food, beverages and catering services.
The European Commission and International Monetary Fund, where Romania has a precautionary credit agreement, expressed concern over the reduction of VAT.
