Reduction of VAT on food, "beneficial to producers"
Competition Council President, Bogdan Chiriţoiu, says that should be encouraged more Romanian products in major stores chains.
Articol de Florentina Varga, 26 Octombrie 2012, 14:29
Food prices have soared in the last year, but not at the same rate as in the European Union, says the competition Council President, Bogdan Chiriţoiu.
He said Wednesday at a conference, that reducing the value added tax on food would be beneficial for producers, however, should be encouraged more Romanian products in major stores chains.
Although agricultural land exists, though not worked, Romania would be able to regain what was until 20 years ago.
Unfortunately, in the last five years, Romania has not managed to ensure the needs of agro-food products, although there is a growing trend.
Reduction of VAT on food, advantages and disadvantages
Reduction of VAT to food would be one of the solutions. Processors say that VAT is unjustified and, huge , and the lack of taxes lead to a black market.
"With this 24 per cent we beat us and retail. My enemy now is the market non fiscalized. I agree, even losing little with them, even having no bargaining power, to encourage them to exist. Because they will unlock the market and turn it into a coherent one .
"In Romania the resulted increase of VAT? At a disaster. Black market pushes the price up. So the black market is the one that raises the price, not the white market ; white market they stabilize, giving bankruptcy and losing. If i explain the consumer that 24 per cent of everything you buy is not ours, maybe it would occur other prices, too "said the President of Romalimenta, Sorin Minea.
Where VAT will be reduced, will appear two types of traders-opportunists who will take advantage and the black market will increase and real traders, which will shrink the prices will put emphasis on the amount of goods sold.
"If, tomorrow, it will be reduced VAT to meat, I guarantee that the black market is doubled. No one will know what the meat will have a definition of meat and you will see all the processed products in the name of meat. Because as we do, "said the director Romalimenta.
A lower price will be a disadvantage for consumers, whereas the quality of products might be doubtful.
Translated by Denisse-Meda Bucura
