VAT on bread to be reduced in Romania

VAT will be reduced in Romania to 9 percent from the current 24 percent from September within the entire bread production chain. The deficit in the budget will be covered by the excise tax increase of alcohol and of luxury tax – Victor Ponta prime minister announced on Monday.

In case of alcohol ,excise tax will be increased to 1000 euros per hectoliter, from the current 750 euros per hectoliter and excise tax will be imposed on such luxuries as yachts, gold jewelry, hunting weapons, and cars over 3000 cc. About 300 million lei (20 billion HUF) revenues are expected from these measures.  (Baranyi László, MTI)