Rompan: Tax evasion down 20 pct in last year due to VAT cut on bread

The cut in the value added tax in the bread industry, to 9 percent from 24 percent, starting September last year, initiated a 20 percent decline in tax evasion, according to the study “The Impact Of Reducing VAT In The Bread Industry To 9 percent From 24 percent,” conducted by the association of milling and bakery companies Rompan.

The taxed flour production increase by 19 percent (164,000 tonnes) in the last year while taxed bread production also increased 19 percent, from 862,000 tonnes to 1.026 million tonnes, writes Mediafax.

The study also mentions that bread consumers saved EUR 136 million on the flour and bread segments, as a result of the tax cut.

The Finance ministry estimates that the tax evasion dropped by RON 300 million, while Rompan estimates that the value is closer to RON 200 million.

Read more about the subject in next week’s print edition.

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