First PSD-PNL controversy in the new government: Prime Minister Ciolacu categorically rejects the Finance Minister’s proposal to lower VAT on basic foodstuffs

Tuesday saw the first public controversy between PSD and PNL in the new government. Prime Minister Marcel Ciolacu (PSD) categorically rejected the proposal of Finance Minister Marcel Bolos (PNL), who had promised to lower VAT on basic foodstuffs.

„I hear talk of lowering VAT on basic foodstuffs. I officially announce that this is not possible. We have to look at what has been done in the past and what has worked, any reduction in VAT has led to a cheapening over a very limited period of time, in two weeks, prices were the same. So it didn’t work,” Marcel Ciolacu told a press conference on Tuesday.

Just the day before, Liberal Finance Minister Marcel Bolos had announced a possible initiative to lower VAT on basic foodstuffs. He admitted in an interview with Digi24 that he had not discussed the hypothesis with Prime Minister Marcel Ciolacu nor presented a study of the budgetary impact of this measure.

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Boloș spoke about the possible decrease in VAT, which is now 9%, on foods such as flour, oil, some types of meat, some vegetables and dairy products. The solution is expected to be discussed tomorrow with Prime Minister Marcel Ciolacu.

„For this basic food package, let’s review the VAT rate. I have not had a discussion with the Prime Minister. Tomorrow we should have this discussion. We can have a reduced VAT rate for this basic food package, a revised reduced rate, because we currently have a 9% rate,” Bolos told Digi24.

Marcel Ciolacu gave details of his intentions regarding the possible decrease in food prices.

„I’m not talking about capped prices, but a scheme applied across the whole chain. I will come up with this scheme in the government,” Prime Minister Ciolacu said.