The VAT Hike in 2010 and Its Effects on the Romanian Firms and their Reaction

Beca Maruºa ()
Additional contact information
Beca Maruºa: Bucharest Academy of Economic Studies

Ovidius University Annals, Economic Sciences Series, 2012, vol. XII, issue 2, 1003-1007

Abstract: This article’s goal is to highlight the main microeconomic and macroeconomic effects of the 2010 VAT hike in Romania and the Romanian firms’ response to it. At 1st July 2010, the Romanian Government raised the Value Added Tax from 19% to 24%, causing chain increases that delayed with nine months the Romania’s exit from recession. It intended to increase its receivables in a period in which the state budget had problems in collecting taxes. I have concluded that the main microeconomic effect was the plunge of the firms’ sales and the macroeconomic one was the decrease of the Gross Domestic Product (GDP). Regarding the Romanian firms’ reaction to the VAT increase, most of them have ignored the VAT hike and they did not have an important response to such a modification.

Keywords: VAT; inflation; Romania; tax evasion; GDP (search for similar items in EconPapers)
JEL-codes: E26 E31 H25 H26 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/ENG/cuprins%20rezumate/volum2012p2v2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xii:y:2012:i:2:p:1003-1007

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().