The coalition is considering increasing the taxation of sugar-containing products, especially drinks. “Let’s take juices as a sweet product. They became more expensive, VAT increased from January 1 to 19%. Now a new price increase is coming, I don’t know if it’s an excise tax increase or a VAT increase,” said Gheorghe Bejan, executive director of the Romanian Sugar Council, during the CLCC conference.

He came up with 3 scenarios of the effect of excessive taxation of products containing sugar.

Scenario I: Black Market

“Imagine a canning shop in the country, and a distributor comes: Tanti Geta, I have these bottles of juice for 6 lei with invoice and VAT, payment in 30 days, or the same bottle for 3 lei with payment on the spot.

Tanti Geta will say: Mr. Petrich, give me two of these with the bill so that I can have them in the window, and 20 for 3 lei so that “my children’s mouths can eat something.”

It happens. When there was a 24% VAT, I think 30-40% of sugar was on the tax-free market. It will be the same with all products. When taxes go up, so does the black market. We don’t know how much.”

Consumption will remain and grow, but it will grow on the untaxed side.

Scenario II: the voter against the mayor

“The child goes with 3 lei to get the juice.

Lady Geta tells him: Boy, I won’t give you any more because 6 lei have been made.

Then the child goes home crying.

His father asks him: Why are you crying?

Child: I couldn’t buy juice for 3 lei!

Then the father takes an ax and goes to find the mayor, who promised him that if he voted correctly, everything would be fine. Well, they’re not good.

Scenario III: Juice is expensive, give me beer

“Petricha goes to Mrs. Geta, who tells her that the juice for 3 lei is no longer available because it was made for 6 lei.

Petriko: But what do you have for 3 lei?

Geta: We have beer.

Petryka: Bag!

Consumption will shift from non-alcoholic to alcoholic. We are in the first place in Europe among children and teenagers in terms of consumption of alcoholic beverages.”

The government’s principle: make it cheaper for the rich and more expensive for the poor.

“Let’s not forget that the VAT on photovoltaics and pellets was reduced last week. For those who have PV installations on their villas and have pellet heating installations, that is, they have villas. We would generally call them: the blanket of the rich. This is done in order to distinguish them from those who drink juices for 1 lei each,” says Gheorghe Bejan.

According to him, this is a state principle: let’s make it cheaper for the rich, and more expensive for the poor.

“There is also a class of special people in Romania, they have special salaries, special pensions, special issues. Parliament votes for a 3-course dinner for 24 lei. Someone should understand these features as well. This is the Government. The government treats them with great understanding. They make it cheaper, and the poor get more expensive, because there are more of them and we take more when we need it,” explained the representative of the Sugar Council.

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