The ordinance cutting the value-added tax for bread will be adopted after July 1, because no budget reviews are permitted in the first half of the year, Mediafax quotes Prime Minister Victor Ponta as having said in Germany yesterday. He noted that the impact study for the introduction of a reduced bread VAT would also need to be published. Premier Victor Ponta had said in the middle of May, that the reduction of VAT for bread from July 1 would require a further allocation of RON 250 M. The International Monetary Fund told the Government to take the money from elsewhere rather than focus on the idea that it would recover the entire amount only from curbing tax evasion. At the same time, Ponta said the Government would keep during its entire term the flat rate of 16 per cent for the corporate profit tax and the decision on the introduction of an incremental income tax for individual persons would be considered according to the budgetary circumstances.
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