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August 12, 2022
BUSINESS

Consumption rebounds on lower VAT on foodstuffs

Agriculture and Rural Development Minister Daniel Constantin (photo) stated on Tuesday in Timisoara that consumption rebounded after the VAT on agro-food products was lowered to 9 per cent, national and international institutions pointing to a drop in prices.

“Statistics show that there was a price drop, as we expected, of 12 per cent in June. A legitimate question remains, namely whether the drop came about after prices had been previously artificially hiked or whether it is a real drop. It is a question we will answer in the following period, to the extent in which we will collect the data through the Competition Council, which has an analysis in this regard, and we will process the data that the National Statistics Institute offers on an annual and monthly basis,” Daniel Constantin said.

Likewise, the minister stated that it cannot be said whether the rebound of consumption is real or based on the elimination of the black market.

“Of course, I cannot say that a consumption rebound is real or based on the elimination of the black market. Irrespective of what the reality is, the effect is very good. Today taxable sales are higher by 12, 15 per cent, it’s gladdening, this is what we wanted: to generate a rebound of consumption, to offer at the moment the demand grows and, implicitly, the price improves for producers too. And this is what we want to stimulate in the following period,” the Agriculture Minister stated.

He emphasized that the data obtained in this sense offer sufficient arguments “to show up before the International Monetary Fund and to say we want to lower the VAT from 24 per cent starting on January 1.”

“If we attain this goal then the talks you see these days – whether the IMF agrees or not –, based on allegations, would no longer be justified because we would rely on real figures. The first month, June, really shows growth, higher budget revenues at a VAT of 9 per cent. I hope these revenues will keep up in the following months too, so as to have this backing in lowering the VAT to 19 per cent, sustainable before the IMF,” the minister pointed out.

 

 

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