Iohannis: At the moment, Romania's budget doesn't allow VAT reduction

President Klaus Iohannis on Tuesday said that the VAT reduction doesn't seem an opportune measure, showing that at the moment the budget doesn't afford such a reduction. 

He was asked how he saw the Social Democratic Party (PSD) endorsement of the VAT cut from 19 to 16 percent and the doubling of the child allowances. 

"PSD is trying to create a new profile as well. Unfortunately, they are going from one extreme to another, instead of stopping in the middle, where it would be wise. I am positive that these matters will be debated and discussed in Parliament and I am counting on the political wisdom of all parties in Parliament. In the end, who can benefit from burdening a budget already suffering significant constraints," Iohannis said. 

The legislative proposal on the reduction of the VAT standard quota from 19pct to 16pct as of 1 January 2020 received a positive opinion from the Chamber's budget finance committee on Tuesday. Although the initiative belonged to some National Liberal Party (PNL) deputies, during the debates, the Social Democrats pleaded for its adoption, while the Liberals asked for a grounded opinion from the Government.