PC's Constantin: The VAT rise will be ruled unconstitutional
Redactia Financiarul Data iun. 29, 2010
The decision to increase the Value-Added Tax (VAT) from 19 percent to 24 percent will be ruled unconstitutional, chief of the opposition Conservative Party (PC) Daniel Constantin said on Monday, at the end of a meeting of the PC Central Executive Bureau.
'The Boc Government is once again promoting a measure that will be ruled unconstitutional, sooner or later, because it modifies the Tax Code under an emergency ordinance,' said Constantin.
He said that Article 4 in the Tax Code says the code shall be modified and supplemented under an organic law exclusively that has to be promoted at least six months before coming into force. 'Article 4(2) says that any amendment or supplement to the code comes into force in the first day of the year that follows the year when such law is adopted,' Constantin pointed out.
He argued that the new measure of the Boc Government to increase the VAT will trigger price increases, a drop in the purchasing power of the population, unemployment, a deepening of the crisis and, sooner or later, a spiral of economic crash.
'Following today's meeting of the Executive Bureau, we decided to reject by all democratic means at our disposal any formula that saves the political cronies of the Power and lay the burden of the economic crisis on the people's shoulders, as the VAT move does,' said Constantin.
Code Yellow rain advisory for eastern and northeastern Romania
Average public wages and employment declining (INS)