Romania increases VAT 5% to 24%
Following the failure to pass austerity changes to the national pension scheme on Friday, the Romanian government has chosen to raise the standard Romanian VAT rate from 19% to 24%. This will be effective from 1 July 2010. The move was seen as vital to unlock the next round of emergency funding from the IMF, which is vistiting Bucharest this coming week to authorise the latest draw down.
Romania joins the UK, Greece, Portugal, Spain and the Czech Republic in introducing VAT rises to help reduce huge state deficits.