The Political Party “Platform Dignity and Truth” (PPPDA) formulated a series of proposals concerning the diminution of VAT in a number of areas. The document was presented in a news conference on September 19. This envisions a 6% reduction in social contributions, a 2% decrease in health insurance contributions and a 50% decline in the income tax for SMEs, IPN reports.

PPPDA leader Andrei Nastase said the document also suggests annulling the tax on dividends and introducing a consolidated tax for a number of areas of the economy.

The diminution of VAT to 8% is proposed for all the food products and non-alcoholic beverages. “The document is designed to diminish the underground economy by reducing the fiscal burden on legal businesses, combined with the harsh punishment of all the undeclared financial-economic activities,” stated Andrei Nastase.

The party’s deputy chairman Alexandru Slusari said that if the proposed measures are implemented, the processing companies will no longer need to resort to different schemes involving phantom companies and not to declare different quantities of products so as to optimize spending. “This way, the growth of official sales will be stimulated and this will offset the losses that will be sustained by the budget following the reduction of VAT The state budget will save hundreds of millions of lei in the process of restoring VAT to exporters,” he stated.

The proposals are to be submitted to the Government.