Romania to raise sales tax rate

Romania’s prime minister says he will raise the country’s sales tax to 24% but will not touch income tax in an effort to keep a multibillion-pound loan from the International Monetary Fund on track.

Emil Boc said he is sending a letter to the IMF proposing to raise sales tax up from 19%.

Mr Boc said the IMF would discuss whether to disburse the next instalment of the €20bn IMF-led loan. Romania needs the IMF loan to pay salaries.