August 17, 2022

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The Romanian government may put a cross on shopping tourism

The Romanian government will raise sugar-sweetened soft drinks to 19 percent from the current 9 percent VATBut according to industry experts, this will have an impact on the entire market as sugar-containing products cannot be separated from sugar-free products from a tax point of view – wrote You masturbate.

Currently, a reduced rate of 9 percent VAT is applied based on product code. At the moment we don’t know which method they intend to use, but it is difficult to distinguish products registered with the same tax code – Alice Nichita, sustainability manager of Coca-Cola HBC Romania, told business daily Ziarul Financier.

It is not clear to the companies concerned whether the VAT increase will strictly apply only to products with added sugar or only to products that do not contain added sugar but contain sugar substitutes.

Candy or dessert

According to data from the National Company Register (ONRC), the value of the soft drinks market in Romania, including mineral water, is around 7 billion lei (571 billion forints) per year. There is no exact information on how much sugary drinks this contains, but it is estimated to be around four billion lei. This means that a 10 percentage point increase in VAT would bring 400 million lei annually to the state coffers.

According to data from the Finance Ministry in Bucharest, the biggest domestic soft drink maker is Coca-Cola HBC, followed by Quadrant Amroc Beverages, a representative of Pepsi, and Porec-based Romaqua, which also bottles Porec mineral water.

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