PM Ponta: 20pct VAT “red line” of Tax Code negotiations

PM Ponta: 20pct VAT “red line” of Tax Code negotiations

Prime Minister Victor Ponta says the value-added tax cut to 20 percent is the “red line” of consultations with the parliamentary parties on the Tax Code.

Speaking at Romania TV private broadcaster on Monday night, he added that the interim head of his Social Democrat party Liviu Dragnea had called him to discuss the matter.

Asked whether the ongoing dispute on the Tax Code also has an economic facet, Ponta answered it was “one hundred percent political.”

Ponta dodged a question on his possible resignation if the VAT is eventually set at 21 percent instead of 20 percent: “I do my job. Right now, I am a general manager of the Government, with four people in the Board — Mr. Liviu Dragnea, Mr. [Vice PM Gabriel] Oprea, Mr. [Senate Speaker Calin Popescu] Tariceanu and Mr. Daniel Constantin [head of the Conservative Party]. My duty is to tell them how things look, then they will make a political decision.” More…