According to the Minister of Agriculture and Rural Development Daniel Constantin, bread consumption in Romania fell from 1.8 million tons in 1999/2000 down to 588,000 tons in 2010, after two VAT increases.

"If in 1999 and 2000, when the decision was made to increase the bread VAT from 11 to 19 percent, bread consumption in Romania stood at 1.8 million tons, in the next four years, while the 19 percent VAT was being in use, the bread consumption fell down to a half, that is to 840,000 tons. This was until another decision was made and the VAT increased from 19 to 24 percent, while consumption fell down to 588,000 tones", said Constantin.

According to the Minister, bread consumption per capita in Romania is currently less than 30 kg per year, compared with the European average of 80 kg per year, with the difference being reflected in the amount of tax evasion in the field.

The minister underscored that the annual loss to the state treasury from VAT and other taxes in the milling and bakery industry reach up to 1.5 billion lei (340 million euro).
According to the Romanian Bakers Association ROMPAN, over 80,000 people are currently working in the local milling and bakery industry.

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