Following this week’s debates over the Fiscal Code, representatives of the main political parties in the Romanian Parliament have reached an agreement over lowering the general VAT level to 20 percent starting January 2016 and 19 percent starting the following year. Politicians have also agreed to postpone the elimination of the tax on special constructions and that of the EUR 0.07 excise tax for fuels to 2017.

Having both the new Fiscal Code and the 2016 state budget meet the two percent budget deficit threshold was the starting discussion point during debates, said the interim president of the PSD, Livu Dragnea. He added that the debates were necessary in order to meet political consensus and thus ensure that the Fiscal Code will not undergo changes once political power changes.

The parties’ agreement on the Fiscal Code changes and it passing Parliament is the best news for the business environment, for investord and for regular citizens, commented PM Victor Ponta in a Facebook post. He didn’t take part in the debates as he presently in a n official visit to the Republic of Moldova.

The changes brought to the Fiscal Code draft come after president Klaus Iohannis sent back to Parliament the initial Fiscal Code for reexamination this July. This enforced the reduction of the general VAT level from 24 percent at present to 19 percent as well as the elimination of the tax on special constructions and the elimination of the EUR 0.07 excise tax starting January 1, 2016.

The Parliament is expected to vote on these changes next week.