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Bucharest
September 18, 2019
ECONOMY FINANCE&BANKING

First month with VAT of 9 pc: Higher revenues against deflationary backdrop

  • This comes as a consequence of diminished tax evasion and the strengthening of the tax collection system’s capacity

 

In July this year the National Agency for Fiscal Administration (ANAF) collected VAT at a higher level year-on-year, despite the fact that July was the first month in which the VAT was lower for foodstuffs. Total VAT revenues stood at RON 4.73 bln in July, up by RON 48.46 M year-on-year.

ANAF, the institution that handles the collection of the value added tax, explained that the analysis of the result posted for the month of July has to take into account the fact that tax revenues were higher despite the fact that in July the prices of consumer goods were lower for the first time (deflation), while the tax collection plan foresaw a rise in those prices (inflation).

ANAF officials also state that the higher-than-expected tax collection plan and the significant growth in tax collected in July, by 7.25 per cent year-on-year, took place against the backdrop in which July was the first month in which tax revenues related to the economic activity registered in June, the month that saw the lowering of VAT on foodstuffs from 24 to 9 per cent, are collected.

ANAF added that the VAT collected in July was also higher by RON 49.28 M compared to July 2014.

The institution emphasizes that this compensation of the negative impact of lowering the VAT on foodstuffs, a measure implemented starting in June, is exclusively owed to the diminishing of tax evasion and the strengthening of tax collection capacity.

 

 

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