Even though the VAT rate has been raised, some prices will remain unchanged

The value added tax will be raised by 5% starting today, to 24%. In spite of all this, some companies, in sectors such as food, furniture, construction and healthcare have decided to keep the prices of products unchanged.

the Romanian Association of Generic Drug Makers (APMGR) announced that its members will try to keep drug prices stable, even if production will entail higher costs. on the other hand. the APMGR said that VAT for drugs will not be increased, remaining at 9%.

However, the 9% VAT rate will only apply to drugs, excluding other products, such as food additives.

"Billa Romania" is another company that will keep prices at their pre-VAT increase levels, they said in a press release sent to our editors.

Sabin Fane, marketing director of "Billa România", said: "It is a measure which has been intended to benefit our customers. We are aware that the raise of the VAT will affect the purchasing power of Romanians, and we have decided to help all consumers that shop at < Billa > afford a rich meal even in times of crisis".

IKEA announced that it will not change prices at its Bneasa store, will not be changed. The company has decided to bear the costs it will incur due to the raise of the VAT rate using its own resources, in order to come to the aid of consumers.

"Absorbing the 5% raise in the VAT starting by July 1st will mean an additional cost for us, which we have chosen to bear ourselves instead of passing it down to our consumers. It is our way of keeping our promise to create a better life for more people. Our low prices are the cornerstone of this promise, and our customers are our partners in filling out this promise", said Cornel Oprişan, sales manager at IKEA Romania.

"Real,- Hypermarket" Romania will also keep its price unchanged, but only for the duration of the promotion valid between July 1st - July 14th. The raise of the VAT that affects products listed in the promotions catalog of "real,- Hypermarket" will be entirely borne by the chain between July 1st -July 14th, 2010, allowing customers to purchase the products in the catalog at the listed prices.