Budăi, ironically: Grandmothers who make jam are hitting Romania’s VAT gap. Leave them alone!

PSD deputy Marius Budăi ironically comments on the statements made by the head of ANAF, who justified the VAT gap by saying that jam made at home by grandmothers is considered untaxed self-consumption.

„The ANAF chief made himself look utterly ridiculous when he pointed the finger at grandmothers who make jam at home for VAT shortfalls! So, of all the smuggling and tax evasion going on in Romania, the ANAF chief has taken a shine to grandmothers who make jam at home! This is Mr. Nica’s justification for not collecting VAT at the estimated level! No, Mr. Nica! That’s not the explanation! Leave our grandparents alone! Deal with the big tax evaders! Deal with the big companies that export their profits out of the country!” says Budăi.

According to him, economic methodologies also take into account household consumption when assessing GDP: „But it really wasn’t necessary, of all the reasons why ANAF isn’t collecting the estimated VAT, to stop at grandmothers making jam at home.”

No one would have thought that grandmothers making traditional jam from fruit from their own gardens would affect Romania’s VAT revenue. However, the European Commission considers that every untaxed product of this type increases the budget deficit.

The statement was made by ANAF head Adrian Nica on Antena 3 CNN, following discussions between Romanian representatives and members of the European Commission.

According to him, our Bulgarian neighbors have requested specialized assistance from the EC regarding VAT collection. For Romanians, however, the issue of self-consumption remains, says the head of ANAF. „When we talk about the VAT gap, in particular, this is what we are trying to do, to present ourselves better and more accurately to the European Commission. The public debate on Romania’s production is well known, as it is specific to this country when we talk about self-consumption. And, to give a few clear examples at this point, the way we treat the jam that grandma makes at home. So jam made from the garden behind the house is calculated at the VAT gap in Romania, yes. It is calculated today at the VAT gap. That is what the commission has assessed us on,” quotes gandul.ro.