Antena 3 CNN Romania Ponta: I am opting for a reduced VAT on fruits rather than meat. The return to a VAT of 19%, sustainable with a growth rhythm of over 3% of the GDP

Ponta: I am opting for a reduced VAT on fruits rather than meat. The return to a VAT of 19%, sustainable with a growth rhythm of over 3% of the GDP

Ponta: I am opting for a reduced VAT on fruits rather than meat. The return to a VAT of  19%, sustainable with a growth rhythm of over  3% of the GDP
10 Mar 2014   •   16:56
Fruits and vegetables are next on the list of VAT reduced products, says Prime Minister Victor Ponta. The Prime Minister's statement was a response to rumored news that after bakery products, meat would be next.

“From my point of view, we should be heading as much as we can towards targeted areas (...) I would like fruits and vegetables to be next, because we are facing a huge tax evasion there together with unlawful competition between local producers and  fruits and vegetables being imported  from outside the European Union  or those from the EU  where we are faced with an evasion from intra-community  taxes", Ponta said on a TV station.

Ponta added that there was also the option to reduce the VAT down to 9% both for meat and fruits and vegetables, if possible.

"Let’s try and see, maybe we can do them together", Ponta said when asked whether that meant that fruits and vegetables would be considered first before the meat in terms of VAT reduction.


He specified though that he expected the evaluations for the first semester regarding the collections from the VAT on bread.

A reduced VAT rate on basic foods and the return  to a  VAT level of 19% are measures featured in the fiscal-budgetary framework of the new Government program.

At the end of December, Premier Ponta stated that a likely reduction of the value added tax on products other than bread would be considered only after July 1.

VAT was increased by the Government in the summer of 2010 from 19% to 24%.

The prime minister also said that the return of VAT to 19% is sustainable only if Romania continues to register the same growth as last year, of over 3%.

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