Most Romanians believe that the VAT cut on food is a good measure both for them and for the local economy.

Almost 84% of Romanians agree with the statement “the VAT cut on food and non-alcoholic beverages is a good measure for me personally,” according to a recent INSCOP survey. Only 5.4% have an opposite view.

Over 78% think this a good measure for the economy while 5.9% think the opposite.

One in three respondents (34.5%) believe “lower taxes mean less money for health, education and infrastructure.” On the other hand, 38.8% do not agree with this statement, probably thinking that tax reductions can indirectly bring more money to the budget.

Over 47% of Romanians believe that prices will be lower after June 1, the date when the VAT cut will become effective, but the drop will not fully reflect the cut. Almost 32% think that there will be no price reductions, and over 19% believe that prices will fall, fully respecting the VAT cut.

Some 62% of Romanians like the Government’s decision to reduce the VAT on food from 24% to 9%, and only 28.9% preferred the general VAT cut from 24% to 20%.

According to this survey, over 91% of Romanians said they paid their taxes, and only 6.2% confessed that they haven't always been good taxpayers. However, only 16.4% of respondents believe that everybody pays taxes in Romania.

Most Romanians, namely 61.8%, believe the state should sanction those who don’t pay their taxes, regardless their income, while 32.6% think that authorities should be softer to those with lower incomes, and 5.6% didn’t answer this question.

When it comes to small companies that don’t pay their taxes, only 26.4% of Romanians think the state should be softer with these taxpayers while 66.6% believe the state should apply the same sanctions to all companies, no matter their size.

The survey was conducted between April 23-30, 2015, on a sample of over 1,000 respondents, at the request of Adevarul newspaper.

Romanian Government cuts VAT on food to 9%

Retailers in Romania: Shelf prices will reflect VAT cut on food

xRomanian Government: VAT cut will have EUR 4.1 bln impact on the budget

Irina Popescu, irina.popescu@romania-insider.com