Vladescu: State arrears are going up, taxes remain unchanged
The state's arrears to companies continued to rise in the first
quarter of the year, but Finance Minister Sebastian Vladescu gives
assurances the VAT will not be increased and says talks with the
IMF target the expansion of the tax base and public sector
restructuring.
Vladescu admits talks with the IMF are complicated, but says the
arrangement sealed with the international institution is not in
danger of being suspended.
On Friday he had the first talks at the Ministry with Jeffrey
Franks, chief of the IMF mission that reviews the stand-by
arrangement with Romania, as well as with representatives of the
European Commission and of the World Bank.
"VAT will not be increased," said Vladescu, asked at the end of the
meeting whether raising this tax was being discussed or not.
Although arrears of the general budget should have been on a
downward trend, they continued to rise this year, reaching 1.6-1.7
billion RON in the first quarter of the year, according to the
minister. The Government has not in fact managed to meet any of the
quarterly targets agreed with the IMF since the beginning of the
arrangement as far as arrears are concerned, and has repeatedly
requested waivers.