Prime Minister Ilie Bolojan commented on Wednesday the statement of Governor Mugur Isărescu, who explained that the introduction of the progressive tax rate would not have had the same impact on inflation as the VAT increase.
“Changing taxation systems cannot be done overnight. It takes at least a year for the Ministry of Finance to be able to put into practice any taxation change policy. Personally, I believe that, in the current situation, which is complicated from a budgetary point of view, such a project is not up-to-date”, said Prime Minister Ilie Bolojan, on Digi 24.
On Wednesday, during the presentation of the Quarterly Report on Inflation, the Governor of the National Bank of Romania, Mugur Isărescu, said that the introduction of the progressive rate would not have had the same impact on inflation as the VAT increase.
“We didn’t introduce the package of fiscal measures in February of the previous year because we didn’t even know what it would be. Then, in February, if you remember, apart from the complicated political situation that we all experienced, several packages of fiscal measures were being discussed, including the introduction of the progressive quota, which would not have had the same impact on inflation. So there was no way we could introduce a package that we didn’t know. We didn’t even know how much and how far it would go to have liberalized the price of electricity, but as soon as the measures were adopted, in July-August, we revised the forecast and got very close to what, in the end, happened last December”declared the governor of the BNR.
