GOVERNANCE | VAT reduction from 24% to 9% for basic foods will lead to lower prices for those products by 15% and significantly reduce tax evasion, according to representatives of employers in the industry. “The first effect would be to increase budget revenues. It will reduce tax evasion bread from 60%, as is currently at 15-20%”, Aurel Popescu, president of Rompan bakery told the Mediafax.
He added that prices of basic foods, including bread, will decrease by 15%. “If on January 1, 2013 decreased 15% VAT will take place, we get to buy bread that day 15% cheaper than that bought the day before”, said the President of Rompan. Sorin Minea, president of food Romalimenta believes that food prices will fall significantly if such measure is to be put in action next year.