Cutting the VAT for food will directly serve the interests of Romanian consumers because it will lower the prices proportional with the tax cut, according to the Association of Large Retailers in Romania (AMRCR).
AMCR’s vice president Delia Nica insists that Romanians consumers need the VAT cut from 24 percent to 9 percent, adding that the measure would help lower levels of tax evasion, encouraging local producers and would stimulate consumption.
She added that all Central and Eastern European countries apply low VAT rates for basic foodstuff, ranging between 0 percent in the UK and 14 percent in the Czech Republic.
PM Victor Ponta said his government’s intention to cut VAT for food products and to apply differentiated taxation levels according to income will be discussed this fall with international financial institutions. He announced last month that next year’s draft budget includes a 9 percent VAT rate for basic food products.
The Association of Large Retailers in Romania consists of the largest retail market players in the country. Set up in 2003, its members include Cora, Carrefour, Auchan, Kaufland, Real, Selgros, Metro Cash & Carry, Billa, Mega Image, Penny Market, Praktiker, Bricostore, Baumax, Dedeman, Hornbach, OBI and Mobexpert.
