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Romania's president nixes tax law, not enough tax collection

Romania's president rejects tax law which could lead to "unsustainable economic growth"

Romania's president nixes tax law, not enough tax collection

BUCHAREST, Romania (AP) -- Romania's president has refused to pass into law a series of tax cuts backed by the center-left governing coalition saying they could lead to "domestic and external risks," including unsustainable economic growth.

President Klaus Iohannis said in a statement Friday the tax cuts which include a proposed sales tax cut from 24 to 19 percent, salary tax cuts, and a reduction on fuel taxes-- all scheduled to take effect at the start of next year -- were not backed by provisions to increase tax collection.

Iohannis said Romania needed higher revenues in order to hike spending in defense to 2 percent in 2017 in line with NATO demands.

Parliament will now need to redraft the measures.


Updated : 2021-09-20 10:43 GMT+08:00