The measure can be a mouthful of oxygen for consumers. However, companies are not obliged to reduce their price with the reduction of VAT, as there is no guarantee that the effects will be felt directly by consumers. At the previous decreases of the VAT quotas, their transmission in prices was of 70-80%, according to the evaluations of the National Bank. However, this effect is limited in time, as other factors may contribute to the price increase.
Source: PwC RO
