Value-added tax

A joint IMF and European Commission delegation held its first talks with Bucharest officials on Tuesday over Romania's proposal to change the fiscal code and boost disposable income and get people spending more.

The discussions, due to end on May 26, will focus also on the need for a new deal with the international lenders.

 Rate would amount to 0.1-0.2 pct to fetch 300-600 mln euros per year; creditors shoot down VAT plan

By Prokopis Hatzinikolaou & Dimitra Manifava

Finance Minister Yanis Varoufakis confirmed a report by Proto Thema on April 20 stating that people will be offered incentives for cash card purchases.

VAT contributions worth 6.5%, 9.5%, 15% and 18% with the average tax rate beneath 15% even if there is a change to the 30% discount on islands with the possibility of VAT on food item charges changing from 13% to 6.5% and 9.5%.

Athens sent its proposals to creditors on Monday for an overhaul of the value-added tax regime as Greek officials indicated that an agreement on a reforms-for-cash deal was close.

A drop of 4 per cent in the Value Added Tax imposed on the printing and selling of books has received a warn welcomed from the small and embattled Romanian book industry.

"This is a necessary if timid sign that the government is finally trying to help the book market," Grigore Arsene, president of the Publishers Association of Romania, said on Wednesday.

Interior Minister Nikos Voutsis told private ANT1 TV on Wednesday that “there is no agreement (with international creditors) until there is a package deal.”

Minister of Culture, Ionut Vulpescu, on Tuesday submitted to the Deputies' Chamber an amendment to the Tax Code to reduce to 5 per cent the VAT for books, notebooks, magazines, newspapers, tickets for museums, memorial houses, historic monuments, architectural and archaeological monuments, zoological and botanical gardens, fairs, exhibitions and cultural events, sports and cinema events as well

A top government official foresees ana greement within May, a day after the Eurogroup in Brussels.

At the same time, the possibility of a referendum or elections is a far-fetched scenario.

Most Romanians consider that the reduction in VAT for foodstuffs and non-alcoholic beverages represents a good measure both for them as well as for the economy, reveals an opinion barometer conducted by Inscop Research and commissioned by "Adevarul" daily.

Photo credit: (c) Cristian NISTOR / AGERPRES ARCHIVE

The 11th of May Eurogroup is slowly revealing itself to becoming a turning point for the Greek economy. After the recent problems in negotiations between Greece and the Institutions, the Brussels talks seem to be finding much more common ground.