“Romanian consumers need a VAT cut for food from 24% to 9%,” AMRCR’s vice-president Delia Nica said Thursday.
Nica also said such a measure will contribute to a lower fiscal evasion, will encourage the local producers and will most certainly boost consumption.
According to him, most European countries enforce low levels of VAT for the basic food, ranging between 0% in Great Britain and 14% in the Czech Republic. Also, the VAT in Poland sets at 5% for basic food, at 9% in Bulgaria and at 8.5% in Slovenia.
Romania’s Government decided in July to cut the VAT for basic food products from 24% to 9% as of 2013, as part of a package of measures for the agricultural sector. The VAT cut measure is equally enforced by other European Union countries such as Belgium and Germany, to ensure social protection and a higher VAT collection rate to the state budget.
AMRCR was set up in 2003 and is a professional association including the largest players on the local retail market, including Cora, Carrefour, Auchan, Kaufland, real, Selgros, Metro Cash & Carry, Billa, Mega Image, Penny Market, Praktiker , Bricostore, Baumax, Dedeman, Hornbach, OBI and Mobexpert.