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January 18, 2022
BUSINESS

Meat processing industry grows by up to 25pct following VAT cut

The slashing of the value-added tax on agri-food products from 24 percent to 9pct on June 1 triggered a year-on-year growth of up to 25pct in the meat processing industry, the president of Romanian Meat Association (ARC) Radu Timis revealed in a  press conference.
According to Timis, the state budget will gradually receive more money following the VAT cut, as the behaviour of actors on the market is expected to change.
‘The moment players on the market change their behaviour, the state budget will receive more and more money, following the VAT cut. Furthermore, the impact of the VAT decrease will be reflected in […] a strengthened industry and a higher consumption among the population. The real balance of this measure will become visible six months from now, when we expect very good results; at the moment the results are good’, the ARC president added.
Timis also mentioned that the pork meat industry was hit the hardest by the price cuts, a trend worsened by the Russian ban on imports of food products from western countries.
The prices of dairy products also dropped; in their case, however, the price of raw materials decreased even more sharply, therefore those most affected are the cattle breeders, Timis explained

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