VAT increase from 19% to 21% and uniformity of quotas reduced to 11%, entered into force on August 1, 2025, should bring about 6 billion annually to the budget, in a record of record deficit (9.3% of GDP) in 2024 and high inflation. For retailers, however, the sudden adjustment of prices is logistically difficult and risks affecting consumption. In this context, many retailers are trying to mitigate the shock, temporarily assuming part of the burden, so as not to lose customers in a period already marked by high inflation and decreased consumption and economic turbulence. «We talked to my colleagues in the association to absorb this new growth. First of all, it is physically difficult to change the prices, you cannot change 10,000 labels in one night. At the association level, we decided to absorb VAT because we cannot change the labels, but also to reduce the shock, to the end, Paraschiv, vice -president of the National Association of Small and Medium Traders in Romania, at ZF Live, a program made with the support of Orange Business. In addition to VAT, excise duties increased in alcohol, tobacco and fuel, but also the introduction of additional energy taxes, put direct pressure on production and transport costs. If in the case of tobacco and spirits the increases were felt immediately, the effect will be delayed, but the estimated impact is much tougher. Increasing electricity tariffs, which came against the expiration of pricing schemes risks being transmitted in the chain, from producers to the final consumer, amplifying the inflationary pressure and limiting the competitiveness of the Romanian companies, says Feliciu Paraschiv. «The impact of increasing excise duties in alcohol and tobacco has come immediately. The impact on fuel has begun to appear, but the impact of electricity growth has not occurred. Paraschiv said at ZF Live.
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