\n\tAbout 50 days ago I had written an article where I was explaining to you what it means for the Romanian economy and the Real Estate market in specific a possible rise of VAT. I still remember the number of people who told me that I am crazy and that this is not possible to happen. Unfortunately, after the Supreme Court's decision, the part of VAT has already come. And I strongly doubt if it will be the only measure, I am expecting more to come, as there are no policies to really solve problems. So, no policies = no solutions = more problems = more debts = more taxes and a vicious circle has started…\n<\/p>\n
\n\t(No Martini = no party) No serious measures = no serious results<\/strong><\/a>\n<\/p>\n \n\tAnyway, this is not something that I can change or control and it is not my business to judge decisions and people. Let us focus on the real meaning of this VAT increase and let us remember together what I had written back then. I will let you read the original text, writing for VAT of 25% (as this was the news at that time) but the announced measure described a rise "only" up to 24%.\n<\/p>\n \n\t \n<\/p>\n \n\t05.05.2010<\/strong>\n<\/p>\n \n\tIMF asks VAT and tax on profits to skyrocket \n\tDid you read the news yesterday? The International Monetary Fund asks Romania to drastically increase the VAT tax, from 19% up to 25%. Also the tax on profit is proposed to rise from 16% to 20%. Nothing is sure yet but I guess that during May we will realize that 2010 will be more difficult than many (dreamers) expected.\n<\/p>\n \n\t"But why is it still falling?"<\/strong> \n\t(<\/a>To read the article with the title "Romanian economy keeps on falling, while dreamers keep on waiting millions to knock at their door"<\/a><\/strong>)\n<\/p>\n \n\tWhat is going to happen with Romanian economy?<\/strong>
\n\tWhat does this mean for the Real Estate market?<\/strong><\/a>\n<\/p>\n
\n\tAfter reading the bad news, many of you will question yourselves: "But why?" Just few days ago, I was explaining to you why the Romanian economy will continue being in crisis during 2010. Actually I am amazed that even until few days ago I kept on reading that the economy will rise. I had remained negative regarding this year and the reasons are very simple:\n<\/p>\n\n
\n\tAs I had explained to you last week, this is a very difficult year for everyone in the world, Romania included. Things are complicated and in case the taxes will increase that much (25% VAT and 20% tax on profits), there is no doubt that the economy will lose ground during this year as well.\n<\/p>\n