Today Romania Cut VAT on Food Down to 9%

e445eefd28e67559c2a3954659be4e9eThe lower rate will be made up for through increased tax collectibility, Prime Minister Monta says

As of today Romania decreased the VAT on food and non-alcoholic beverages from 24 to 9 percent, according to information by the Bulgarian National Television. The government believes this measure will create jobs, increase consumption, and aid the poor.

The lowering of VAT by 15 percentage points shall apply to all sectors of the food industry—producers, supermarkets, and restaurants.

Forecasted drop in prices is 12 percent. For the Romanian Treasury this means an income lessened by about 5 billion lei, or 1, 230 billion dollars.

However, according to Prime Minister Victor Ponta most of that decrease will be compensated for through better tax collection. Romanians spend about a third of their monthly income on food.

 

Source: www.investor.bg

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