AUR has submitted a legislative initiative to reduce VAT on fuels from 21% to 5% to protect farmers and consumers from price increases.

The Alliance for the Union of Romanians (AUR) announced the submission of a legislative initiative proposing to reduce the VAT rate on fuels from 21% to 5% in the first three months, followed by a return to 9% in the fourth month. AUR deputy, Florin Popovici, emphasized that this measure aims to protect farmers, entrepreneurs, transporters, and consumers from rising fuel prices, which affect the prices of food and services.

He stated that the reduction of VAT will have an anti-inflationary effect, estimating a decrease in inflation by 0.8-2 percentage points and an increase in GDP by 0.5-0.8%. Popovici warned that the lack of government intervention could lead to recession, with inflation potentially reaching 12-14%. AUR mentioned that similar measures have been successfully implemented in other European countries, such as Poland and Germany. AUR representatives are urging the Government not to block the initiative and to respond to the needs of Romanians who bear high taxes on fuels.