ROMPAN: Tax evasion in the bread industry down 20 pct

Cutting back the VAT from 24 to 9 percent increased taxed production to 225,000 tonnes in the last ten months in the bread industry, according to Aurel Popescu, president of ROMPAN. Moreover, tax evasion on this segment dropped 20 percent, writes economica.net.

“We will issue an annual report on October 15, but after 10 months since cutting VAT we managed to tax 225,000 more tonnes of bread and pastry products and 20 percent of the grey economy has been brought to the surface. Prices dropped on average 12 percent and producers sold safer products. Of course it is not enough, those who used to bring damages via VAT have found other methods” Aurel Popescu argued.

The ROMPAN head added that the bread industry has recovered in 2014, after two years ago experiencing a wave of bankruptcies and insolvencies. Tax evasion has been reduced from 70 percent to 40-45 percent.

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