Boc government pledges to the IMF to build 2011 budget around 24% VAT

The 2011 budget must be built taking into account a 24% VAT level, and the document has to be approved by the Parliament by mid-December, as pledged by Boc Government in the additional letter of intent addressed to the IMF, which was approved yesterday.
The stipulation referring to the level of VAT valid for next year was expressly introduced in the text of the letter, unlike the alternative that existed in August, right after the evaluation visit of the Fund's mission.
Shortly after VAT was raised to 24% starting July 1, president Traian Băsescu started speaking about the outlook of reversing the move, possibly starting January 1, but the explicit pledge now made by the Government should end speculations about the modification of VAT level next year.
The new letter of intent restates the pledge related to the drawing up of an emergency ordinance on the taxation of individuals with high fortunes.
The Government reaffirms commitment that the new salary scheme in the budgetary sector be applied starting January 1, 2011. The objective of laying off a further 90,000 public sector employees is also maintained.