Food for thought: Romania slashes VAT on foodstuffs to 9%Comments
By Euronews with ROTVR
Romania used to be the only European Union country not to have differentiated VAT on most foodstuffs, with bread being the exception.
But now, Bucharest has slashed the value-added tax from 24 percent to nine percent on all food products, as well as non-alcoholic beverages and catering services.
Alcohol has not been reduced.
Romanians spend around a third of their income on food – a huge jump from the 18 percent EU average.
A recent INSCOP survey suggests almost 84 percent of Romanians welcome the reduction.
The new measure is expected to have a 4.1 billion euro impact on the state budget by 2018, the government estimates.