Romanian Competition Council president Bogdan Chiritoiu said that he feared retailers and producers could close deals during this period to keep their profits after the VAT cut on food.

The Government has decided to reduce the VAT on food and beverages from 24% to 9% starting June 1.

The Council monitors prices, and if it discovers illegal agreements among retailers and producers, it will start investigations, Chiritoiu said, cited by local Mediafax.

Last week, the Competition Council announced professional associations of retailers and manufacturers that they can recommend their members to lower prices by 12%, after the VAT cut, according to an Agriculture Ministry report.

The Council has also told them that it will control the evolution of prices nationwide after the VAT cut, to see if they keep the price.

editor@romania-insider.com