The Romanian parties have agreed in a four percentage points VAT reduction

Following debates, the representatives of the main political parties of the Romanian Parliament have reached an agreement over lowering the general VAT level to 20 percent starting January 2016 and 19 percent starting the following year.

Previously a five percentage points VAT reduction was planned. The VAT reduction comes into force on 1 January. The Romanian government led by Victor Ponta originally planned a VAT rate cut of four percentage points, but the liberal opposition insisted on a 19 percent rate. (MTI)