Romanian industry fears junk food black market and fraud

Last month the Romanian parliament has adopted an amendment to its 2006 healthcare reform legislation that imposes a new tax on certain “non-recommended” ​foodstuffs as of 1 March, in an effort to combat obesity. Funds raised through the tax will be paid into a state treasury account for the exclusive use by the Ministry of Health for health promotion schemes.

The amendment was made without consultation with stakeholders. Mihai Visan of Romalimenta Federation (RF) told FoodNavigator.com that a public debate has now taken place, in which the health ministry supported the idea and RF was opposed it.

However RF is not entering into discussions over details like categories to be taxes and the level of the tax, because “industry rejects the very idea of food tax, considering it discriminatory for producers, burden-some for large segments of the population and totally inappropriate in this period of crisis,”​ Visan said.

Although saying it is “pretty clear” that the health ministry wants the tax simply for financial reasons, Visan points out that the overall budget will get no extra revenues. On the other hand, he expects a black market in junk food to emerge, and “fiscal fraud will flourish even more”.

AsBest case scenario: no nutritional improvement. Rather worse situation- prosperous underground economy will poor on the market more low price, low quality and less safe food products.

Despite the short lead-in time (it looks likely the tax will be enforces either as of 1 March or the end of the first semester), no details have been handed to industry on what foods the government wants to tax and at what level.

“Just some confusing declarations that it'll be no tax on meat and meat products, milk and milk products, no tax on shaorma [pitta bread-wrapped fast food] or pizzas,”​ said Visan. He thinks the tax is probably intended on high energy foods like sweets and soft drinks.

Public health support​

The junk food tax plan has met with applause from the European Public Health Alliance (EPHA), a network of NGOs. In an open letter to Romania’s prime minister Emil Boc and health minister Attila Cseke, the alliance congratulated Romania on “its bold step forward in the fight against overweight, obesity and diet-related diseases”.​

However it also recommends Romania uses other pricing mechanisms or subsidies to make healthy options more widely available and affordable.

“We hope that this initiative will lead others in Europe to take positive action to tackle this issue,”​ wrote the EPHA, which also drew attention to schemes in other member states, such advertising curbs and reformulation targets in the UK.

The letter was originally signed by Monika Kosinska, secretary general of EPHA, but Romanian MEP Oana Antonescu has also added her signature. In associating herself with the move, Antonescu said the tax should be thought of as a form of education.