Over 68% Of Retailers In Romania Up Prices Following VAT Hike – Survey

Over 68% of retailers in Romania have decided to increase prices following the Government’s decision to raise the value added tax to 24% from 19%, while only 31.71% said they are keeping prices unchanged, according to a survey released Tuesday.

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The survey, conducted by Soft Mentor, which provides stock control software solutions for supermarkets and warehouses, also found that 78% of retailers that have kept prices unchanged on July 1 plan to hike them when they receive new and more expensive merchandise from suppliers.

The survey shows the percentage of retailers keeping prices unchanged is higher than the country average in capital Bucharest, where competition is fiercer and small retailers are struggling to keep up with large retail chains.

"Small retailers don't have enough human and financial resources to be able to change price tags over night, which prompts them to hike prices and relabel their products gradually ," Soft Mentor general manager Marius Vetrici said in a press release.

Of the companies that decided to keep prices unchanged, 95% said logistics played a key role in the decision.

Nearly all companies surveyed (97%) said the tax hike was decided and enforced on too short notice.

The survey was conducted between June 29 and July 2, countrywide, and polled 205 companies in various fields of activity.

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