Constantin added the VAT cut for bread is not part of the talks with the International Monetary Fund IMF in January.
The tax evasion in this field sets at around 70%, while cutting the VAT would increase the tax pool and there could be compensated the amounts not cashed to the state budget.
“This is not a social measure, it does not aim to decrease the bread price; it is a meausre that will probably stagnate the bread price for a longer period, would most importantly fight the tax evasion,” said Constantin.
The project is meant to show if the VAT cut reduces tax evasion in the bread industry and increases sales, Premier Victor Ponta said Monday.
According to the prime minister, the measure is discussed with the ministers of Agriculture and Finance. Its impact on the state budget would be 150 million lei (EUR34.2 million), he added.
The measure will not be enforced to bakery products such as cake.