BUCHAREST, Romania – Romania plans to start cutting taxes from next year to boost economic growth and increase living standards.
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Finance Minister Darius Valcov said sales tax would be slashed from 24 percent to 20 percent from 2016.
The sales tax on food will drop to 9 percent, and taxes on fuel, alcohol and cars would also be reduced.
Valcov said Wednesday the plans would reduce revenue by 5.2 billion lei ($1.3 billion) next year, but could boost growth, cut tax evasion and create 145,000 new jobs in 2016. Parliament would need to approve the measure.
Romania has reined in spending since implementing a tough austerity program in 2009. Economic growth slowed at the end of 2014.
The government also wants to cut the flat tax on income and company earnings in 2019.