Food VAT cut starts on Monday in Romania

June 2, 2015 4:58 am 

BUCHAREST, June 1 — The food value-added tax (VAT) is cut to 9 percent from 24 percent since Monday in Romania.

This will contribute to an increase of purchase power and economic growth, according to Cristian Socol, macroeconomic adviser of the prime minister.

The main beneficiaries will be those from the poorest and the average income households, Socol said, according to a report by Agerpres news agency.

The cabinet headed by Social Democrat leader Victor Ponta announced in early April to cut the VAT for all food products, as well as on non-alcoholic beverages and catering services.

The significant drop in VAT on food was introduced a year and a half after a decrease in VAT for bread was enforced. It is estimated that the new VAT cut should lead to a drop of about 12 percent in food prices. (PNA/Xinhua)

RMA/EDS

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