PM: VAT on fruits, vegetables, bio products could drop in 2015 in Romania

The Romanian Government will be analyzing the possibility to reduce VAT on fruits, vegetables and bio products starting the beginning of 2015, the Romanian Prime Minister Victor Ponta said yesterday during a TV show on Romania TV. The Government will start its analysis in autumn on the effects of the reduced VAT on bread, and decide based on that data whether to extend the measure to other products, after the first phase of fruits and vegetables. "There is high tax evasion on fruits and vegetables and local producer face harsh competition,” said Ponta. The VAT in Romania is currently of 24 percent, while the VAT on bread is of 9 percent, and was introduced in September 2013. editor@romania-insider.com