Romania ranks top in EU by VAT rise
Romania ranks top in the European Union alongside Greece by the highest rises in the VAT standard level between 2000 and 2010 and it also ranks in the top three slots by the lowest prices for alcoholic beverages, tobacco, meat and bread, Andreea Paul Vass, personal adviser to Prime Minister Emil Boc, said on Wednesday.
Over 2000-10, the VAT standard level in Romania went up by 5 percent. At the opposite end there is Slovakia, with a drop of 4 percent and the Czech Republic with 2 percent. The EU 27 average shows the VAT standard level dropped by one percentage point.
When it comes to the lowest prices, Romania ranks first by the alcoholic beverages prices, accounting for 70 percent of the European bloc’s average. Romania ranks second in the EU 27 by the lowest meat prices (58 percent of the European average) and tobacco prices (47 percent of the European average).
Romania is also placed third by the prices for bread and grains (61 percent of the average). Romania, Bulgaria and Poland have prices levels at between 30 and 40 percent below the European average, Paul Vass said. As for the income taxation, Romania is placed fourth in the EU 27 by the lowest taxation on the individuals’ earnings and it is also fourth by the highest VAT standard level in 2010.
Romania ranks second by the highest cuts in the individual income taxation over 2000-10 from 40 percent to 16 percent, after Bulgaria that posted cuts from 40 percent to 10 percent. The state ranks sixth in the EU 27 by the lowest taxation rates on the company profit in 2010.