Sales tax slashed in Romania by mistake

AP News
Posted: Oct 20, 2010 8:41 AM
Sales tax slashed in Romania by mistake

Legislators in Romania's governing party have mistakenly voted to reduce a sales tax on food to one-fifth its previous level.

Tuesday night's unanimous vote in parliament will certainly be popular with the public in a country deeply mired in a recession.

But the government will now try to get it annulled.

The error occurred when the lawmakers didn't bother to read the opposition proposal to reduce the sales tax from 24 percent to 5 percent before the vote.

On Wednesday, Finance Minister Gheorghe Ialomitianu called that a mistake. Another lawmaker from the governing party apologized and took responsibility.

In July, the government increased the sales tax from 19 percent to 24 percent to keep the budget deficit at 6.8 percent of GDP.