ECONOMY FINANCE&BANKING POLITICS

PM Ponta on Fiscal Code: It would be good to be adopted by political consensus; Iohannis agrees on 20pct VAT

Prime Minister Victor Ponta on Wednesday evening said that “it would be very good” that the new Fiscal Code be adopted by political consensus and pointed out that President Klaus Iohannis showed he agrees on a 20-percent VAT.
“What I discussed today with President Iohannis, with National Bank of Romania Governor Isarescu started from a matter I keep saying: the Fiscal Code isn’t for politicians, namely we don’t adopt it to the best interest of the parties or MPs; the Fiscal Code regards economic stability and economic prospects, a reason why it is better not to make it an object of political dispute, as it, unfortunately, has been, since it was resent to Parliament, but to be a way of thinking undertaken by as many as possible. I also explained the President and the governor that I take responsibility for everything that the Tax Code provides regarding the VAT, namely 20 percent – may I remind you that the Government’s draft provided for a 20-percent VAT (…) The President said: yes, I agree on 20 percent and other matters, let them come into force, for instance the provision on the special rtax or on the excise duty, starting at a later date. I don’t regard those [provisions] as being essential, except for the 20-percent VAT and the rest of the provisions. Same does the governor. But the decision belongs to Parliament alone, to the parties represented in Parliament,” Ponta said in a call-in on Wednesday evening to Romania TV private television broadcaster.
Ponta reiterated that the 20-percent VAT would have an impact that can be covered.
“With a 20-percent VAT, there is an impact that we can easily cover from economic growth, a better collection and administration of expenses. (…) With the reduction to 9 percent of the VAT for foodstuffs, tourism and other services, in fact our VAT average stands around 16.3 percent. I believe that it would be very good for it to be adopted by political consensus,” Ponta added, referring to the Fiscal Code.
President Klaus Iohannis on Wednesday met Prime Minister Victor Ponta, with whom he discussed the legislative priorities of this autumn, the Fiscal Code included, the Presidential Administration informed.
Representatives of the parliamentary parties, at the Palace of Parliament, on Thursday, will have a technical meeting on the topic of the new Fiscal Code, which was sent back to the Legislature for re-examination by President Klaus Iohannis. For this draft, Parliament was convened in extraordinary session next week.

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