BUSINESSFINANCIAL

Lower food prices by 12.8 pc after cutting VAT, Romania’s competition watchdog shows

By Anca Bernovici
0

Get real time updates directly on you device, subscribe now.

Following the government’s decision to reduce VAT on food as of June 1, during May 4 – July 5 Competition Council (CC) has conducted checks on 18 basic products. Nine retailers have participated in the analysis: Auchan, Billa, Carrefour, Cora, Kaufland, Lidl, Mega Image, Penny, Profi. Regarding the traditional trade, the data were collected from over 600 stores across the country.

“(…) The prices have dropped in both traditional and modern trade at: 9.1 percent and 12.8 percent respectively. It is noted that the prices decline in modern trade was more pronounced than the traditional trade, reduction of VAT being almost fully passed to consumers.” Bogdan Chiritoiu, the president of the Romanian competition regulator, said for Agerpres.

He argues that a lower price reduction of traditional trade could be attributed to the fact that in this sector, competition is not very intense, and another cause could be the high evasion.

Also, Chiritoiu said that the institution will continue to monitor the prices in shops in the coming months, the main purpose of the analysis being to see if a cartel might arise between retailers.

DONATE: Support our work
In an ever changing and challenging world, the media is constantly struggling to resist. Romania Journal makes no exception. We’ve been informing you, our readers, for almost 10 years, as extensively as we can, but, as we reject any state funding and private advertising is scarce, we need your help to keep on going.
So, if you enjoy our work, you can contribute to endorse the Romania Journal team. Any amount is welcome, no strings attached. Choose to join with one of the following options:
Donate with PayPal
Donate by Bank Wire
Black Zonure SRL
UniCredit Bank. Swift: BACXROBU
RON: RO84 BACX 0000 0022 3589 1000
EURO: RO57 BACX 0000 0022 3589 1001
USD: RO30 BACX 0000 0022 3589 1002

Anca Bernovici

Anca Bernovici

I started my way in life with the intention to pursue a teaching career. But, after graduating from the Faculty of Letters – the University of Bucharest in 2004, my first job as a reporter at one of the leading newspapers in Romania changed my perspective. I have specialized in communication and communication campaigns, following the Master's courses at the Faculty of Journalism and Communication Studies (FJSC), attending a BBC Communications scholarship.
I’ve represented several important publications in Romania as business journalist, being accredited in the finance and banking field. In 2015, I had the opportunity to interview the International Monetary Fund (IMF) Mission Chief for Romania, Andrea Schaechter. As business journalist, I also had the opportunity to interview ministers for Economics and Commercial
Affairs offices within different embassies in Romania or officials of large companies investing on the domestic market.
After almost 15 years of journalism, I still want to explore new ways, to inform and stay updated. That’s why The Romania Journal project fits me so well.
Today I describe myself as a passionate about the history of world culture, having a PhD in Hebrew Culture and Civilization, after a scholarship at the University of Haifa International School, as a language addict, an environmental activist, pet lover and traveler.

You might also like More from author
Leave A Reply

Your email address will not be published.