The VAT increase was a decision of the Government, after analyzing the budgetary situation, even though President Nicusor Dan requested that this should not happen, Prime Minister Ilie Bolojan declared on Monday.
"It is a decision of the Government, because the President, rightly, upon the inauguration of the Government, asked me to do everything in our power not to increase the Value Added Tax, not to increase taxes in general, but between this legitimate desire and the reality that means discussions with the markets, investors who buy our bonds, discussions with the European Commission, analysis of the budgetary situation, we have reached a situation in which the Government had to assume responsibility for these measures, including the re-establishment of VAT on two rates, one of 21% and the other of 11%. This is the reality", the Prime Minister stated on Antena 1 TV station.
Ilie Bolojan stressed the importance of a good relationship between the prime minister and the president, because this influences the external image, agerpres reports.
"The relationship with the President is one of respect and collaboration, because only in this way can our country take full advantage of the possibilities so that in foreign policy, for example, we can have maximum results under the given conditions, taking into account both the powers of the President of Romania and the Prime Minister," he stressed.
Prime Minister Ilie Bolojan presented, on Monday, in Parliament, the measures in the first fiscal package for which the Government has assumed responsibility for reducing the budget deficit, announcing the reorganization of the VAT, the "necessary" increase in some excise taxes, the introduction of the health insurance contributions for pensions of over 3,000 lei.
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