Study: Lower VAT rate on food increases sales volumes in Romania
Food prices went down by 11% and the number of sold products increased by 17% in the first two weeks of June, following the reduction of the VAT rate, according to market research company Nielsen.
The price of coffee products dropped by 15% which led to an increase in volumes of 25% compared to the same period last year. Other categories which recorded increases in volumes include meat, cheese, soft drinks and snacks, reports local Mediafax.
The number of products sold between June 1 and June 14 is 12% higher than in May and 17% higher compared to June 2014.
The VAT rate on food and non-alcoholic beverages went down from 24% to 9% starting June 1.