Romanians spent around 29 billion euros in the first half of the year on goods and services, i.e. on food, energy, cars, homes and mobile phones, according to Finance Ministry data on VAT collected by the state budget.

Finance Ministry data shows that VAT earnings climbed almost 57% in the first half of this year against H1 of 2007, and reached 20.2 billion RON (5.5 billion euros), this tax being the biggest source of income for the state budget, which accounts for around a quarter of the general budget.

T he standard VAT rate of 19% is applied to most goods and services, but there is also a reduced rate, of 9%, for products such as medical prostheses and drugs, as well as for services such as publishing books and magazines, and for accommodation services in tourist facilities.