Kelemen Hunor, leader of the Democratic Alliance of Hungarians in Romania (UDMR), is advocating for a reduction in the Value Added Tax (VAT) from its current 21% back to the previous rate of 19%. Hunor argues the VAT increase implemented in August 2023 has fueled inflation and diminished consumer spending. He specifically claims the increase is contributing to economic instability. The UDMR leader warns that without corrective measures, Romania risks entering a prolonged, chronic recession. He believes lowering the VAT would stimulate consumption and alleviate inflationary pressures. The proposal comes amid ongoing economic concerns and debates regarding fiscal policy within Romania. Further details regarding the broader context of the VAT increase were not provided in the source text.
