Romania Fin Min Says Fast Food Tax Is Just An Idea

Romania’s Finance Minister Sebastian Vladescu on Thursday said no final decision has been made as to applying a tax on fast food, adding it is only an idea and it remains to be seen whether or not the tax will be applied.
"No decision has been made so far, it is only an intention. I haven't talked to the health minister on the matter. We shall see what happens next, no decision or calculations have been made so far, it is just an idea," Vladescu said.

Health Minister Attila Cseke on Tuesday said the ministry plans to introduce a tax on fast food, similar to the sin tax (levied on alcohol and tobacco), in order to support national health programs.

The tax will be levied starting March 2010 on economic operators that produce or import fast food, pastry, cakes, snacks, chips and fizzy drinks, and the quantum of the tax will be established after negotiations with the respective operators.

The tax will be paid by all legal entities that produce or import food with a high level of salt, fats, sugar and additives, and fast food, pastry, cakes, snacks, chips and fizzy drinks are included in this category of unhealthy food. Mineral water and natural juice obtained from fruit or vegetables will be exempt from this tax.

The list of unhealthy foods will be approved by a Government decision according to the draft law introducing the tax on fast food. The level of the tax will be established after talks between the Health Ministry and companies producing or importing unhealthy food.

Food industry officials said the fast food tax will have only negative consequences, leading to higher prices (and thus lower consumption), layoffs and less Government revenue from this industry.