Dan Voiculescu calls for the reduction of VAT on all basic foods. The founding president of the Conservative Party wrote to the Finance Minister about this explaining why lowering taxation should not be done gradually on certain products, but on all basic foods.
Earlier this year, Dan Voiculescu sent a letter to Prime Minister Victor Ponta detailing the benefits of reducing the VAT.
"Reduced VAT on all basic foods. No half measures!" says Dan Voiculescu on his blog.
The founding president of the Conservative Party welcomes the Government's initiative to reduce the VAT rate down to 9% to some basic foods - meat, vegetables, fish and seafood, and says that for years Romanian politicians lacked the courage to take easy steps like this.
"Better late than never, but it is essential to give up half measure that do not solve anything. That was the message I conveyed today to minister Darius Vâlcov. At the same time, we must not forget that the underground economy is now a quarter of the economic activity. (...) The price of basic foods should be accessible to all, whether pensioners or social assisted or budget paid", Dan Voiculescu wrote on his personal blog.
In a letter to the Minister of Finance, Darius Vâlcov, Dan Voiculescu talks about the actual effects of reducing the VAT on all food
"I welcome the initiative to reduce the VAT rate down to 9% to some basic foods (meat, vegetables, fish and fruit). It is an important step, but I remind you that in order to be effective, the concept should be extended to more basic foods so as to lower at least by half the underground economy - as I have constantly argued for more than eight years. At the same time, it is essential to give up half measures and include in the basic food group sugar, cooking oil, yogurt and other dairy products, " Dan Voiculescu wrote to the Minister of Finance.
In an attempt to convince governments of the need to reduce VAT rate on basic food, on January 20, 2015, Dan Voiculescu wrote to Prime Minister Victor Ponta.
"The competitiveness of a nation lies in the ability of an economy to ensure the population a high standard of living and occupancy, on a sustainable basis. (...) In 2015, Romania will not have to miss the easiest way to growth: a VAT reduced to more of the staple food, which actually turned out to be necessary and effective at the same time. We have a success to provide as example: lowering the VAT on bread, " Dan Voiculescu wrote in a letter to Prime Minister Victor Ponta.
The law initiated by Dan Voiculescu for the reduction of VAT down to 9% on basic foodstuffs was adopted in 2006 by the Senate, but the Chamber of Deputies did not pass the law until today.
Employers say that such a measure would reduce the huge figures on tax evasion and have public support: more than 200,000 people signed a petition on reducing the VAT on meat. If the measure would be applied to all foods, then Romanians would save hundreds of lei, month by month, say experts in the field.