“The legitimate market would double after the VAT cut. In 2014, fish sales from domestic production stood at around 11,000 tons, of around EUR20 million. Prices could go down by around 6-8% after the VAT cut,” association president Catalin Platon said Friday.
Even in a scenario where prices would not decrease, said Platon, farmers would pocket the difference and thus have additional funding available for investments and job creation or at least would pay more in profit taxes.
“One way or another, lowering the VAT rate will bring more money to the state budget on the medium and long term and will allow fisheries to develop,” he added.
According to Romfish, the new Tax Code draft will also help the fisheries industry through the elimination of the special constructions tax, which will unblock investments in dams, canals and installations .
The Tax Code draft proposes a VAT cut to 20% from 24% as of next year and to 9% for meat, fish, fruit and vegetables. The code also eliminates the special construction tax introduced in 2014.