Romania plans to start cutting taxes from next year to boost economic growth and increase living standards.
Finance Minister Darius Valcov said sales tax would be slashed from 24 percent to 20 percent from 2016.
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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.