“The drop in VAT and other taxes is very important for consumption if it is reflected in shelf prices. Romanians have tight budgets and lower prices would encourage consumption. Fierce competition on the market will also determine the reflection of tax cuts in prices,” said Belciu.
The new Tax Code eliminates excise duties on coffee as of January 2016 and lowers the standard VAT rate from 24% to 20%. VAT and excises make up 30% of the price of coffee.