Romanian Agric Min Wants To Convince EC To Allow Reverse Taxation On Food

„I think we need to work and get the draft law introducing reverse taxation on food products accepted. Romania is not the only country that has this problem and needs to introduce reverse taxation. Italy and Spain have big problems too,” Tabara told MEDIAFAX in an interview.

The European Commission rejected Romania’s plan to introduce reverse taxation on food products, which entailed that the value added tax would be collected when the product was sold in stores.

Aurel Popescu, head of Romania’s bread industry association Rompan, said in July he asked the finance minister at the time, Sebastian Vladescu, to convince EU officials to accept the measure, which helps fight tax evasion.

„I would like to clear issues regarding tax evasion because otherwise we keep demanding money for agriculture in vain and bring nothing in return,” said Tabara.

Romania had requested derogation from EU regulations to apply temporarily, until the end of the year, reverse taxation on intra-community trade with cereals, fruit, vegetables, meat, sugar and bread and the Finance Ministry said the measure was to be applied within ten days after EC approval.