EXCLUSIVE. Member of the European Parliament and former head of the National Agency of Fiscal Administration (ANAF) Sebastian Bodu speaking about consequences of reduced VAT for bread: “Government fuels evasion on alcohol and kills jewelry merchants. Bread will not be cheaper.”
PDL Member of the European Parliament Sebastian Bodu, former head of ANAF, criticized Ponta Government’s decisions to reduce VAT on bread and introduce new excises (on jewelry and precious metals) or increase the existing ones (on alcohol and high price cars) as of 1 September 2013.
Bodu stated for Select News that those changes “will kill jewelry merchants, increase evasion on alcohol sales, but bread price will not decline as 80% of producers and merchants operate in the black market and will continue to do so, despite partnerships with relevant associations that the Government announced. The other 20% will keep the price fixed to survive the competition of those operating in the informal economy. Changes in VAT will go into the profit margin.
Clearly in disagreement with the political crowd, liberal democrats and factions stemming from them included, Sebastian Bodu announced at the beginning of the year that he would leave the frontline of the public scene at the end of his term in the European Parliament and will devote time to his profession as a commercial attorney at law.
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