Trade union: Tax evasion in Romania’s bakery products market exceeds 40 percent

Aurel Dragan 19/04/2018 | 16:21

Tax evasion in the Romanian bakery products market exceeds 40 percent, Aurel Popescu, president of Rompan, a Romanian association of milling and bakery companies, said at an international exhibition in Targu Mures, quoted by Agerpres.

In 2013, the Romanian government cut VAT for bakery products to 9 percent, and in the subsequent years tax evasion in the sector fell to 25-30 percent, from 60 percent before the tax cut. “Things are out of control today and I think tax evasion stands at 40 percent,” Popescu said.

This percent is close to Hungary’s, a country with a high VAT level.

“All the presidents of associations from Central and Eastern Europe will meet in Budapest to come up with a common plan to reduce tax evasion, and we will present it to Brussels,” he added.

Rompan’s president claims one of the reasons of high tax evasion in Romania is the unequal EU and national subsidy-system: farmers get subsidies from the government, while bakers don’t. 

Bakers’s trade unions say their businesses are in the worst position due to low prices and lack of subsidies and try to get help from the European Commission. 

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