PM Ponta calls for Competition Council’s support following VAT cuts on foodstuff, to prevent new cartels being formed
Prime Minister Victor Ponta has asked for the Competition Council’s support during the first few months after applying the 9% VAT quota to foodstuffs, to prevent the emergence of new cartels on the market, showing that the measure previously applied to reduce VAT on bread had also ‘less positive sides’.
“I want to ask you for support in what will happen after June 1, a period of one, two, three months, for the enforcement of competition and market rules following the VAT cut on all foodstuff products. The experience we had regarding the VAT cut for bread had positive sides and less positive sides. Now, however, the VAT cut will be applied for all foodstuffs and I believe that the competition and free market rules will really work; we not want to have new cartels for meat, for bread, for other products that actually stop what we envisaged most, namely an open competition, lower prices and higher quality,” said PM Ponta, at the Competition Council balance sheet.
Government decided in June to cut the VAT to 9% for all agri-food products.