ECONOMY FINANCE&BANKING

FinMin Teodorovici: Government has decided to reduce VAT to 5% for traditional products

The Government has decided to reduce VAT to 5% for traditional products, Finance Minister Eugen Teodorovici announced on Tuesday.

According to him, this normative act was among the expected ones and brings benefits to both citizens and the economy as a whole.

“To encourage consumption of healthy food and to boost the sale of Romanian traditional, montane organic, bio or other products authorized by the Ministry of Agriculture and Rural Development, the Government has decided to reduce VAT rate to 5% for the delivery of food, including beverages, except for alcoholic drinks, intended for human and animal consumption, living domestic animals and poultry, seeds, plants and ingredients used for food preparation, products used to complement or substitute food products”, Teodorovici explained at the Victoria Palace at the end of the Government’s meeting.

Earlier, PM Viorica Dancila announced the VAT decrease from 9% to 5% for the “mountain, organic and traditional” products “authorized by the Ministry of Agriculture and Rural Development”.

“By reducing the VAT rate for the whole distribution chain, we contribute to reducing the price of these products, thus encouraging people to eat healthy food”, said the Prime Minister.

“At today’s meeting, we will discuss a normative act that has important benefits for people and for economy, on a medium and long term. First of all, we are planning to increase Romanians’ access to healthy products of a high quality, which are increasingly wanted on the food market. We will reduce the Added Value Tax from 9% to 5% for the delivery of this food category, namely the mountain, organic and traditional products authorized by the Ministry of Agriculture and Rural Development. By reducing the VAT rate in the whole distribution chain, we contribute to reducing the price of these products, thus encouraging people to eat healthy food”, Viorica Dancila stated at the beginning of the Tuesday Government’s meeting.

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