Jewelry sales could drop by up to 40% if VAT increases to 25%

Most pessimistic are jewelry companies, which expect 35-40 percent drops, while companies operating in the auto industry have clients who are less sensitive to price-related aspects, and more concerned with the pollution tax than a rise in VAT.

Oliver Petcu, Managing Director in the CPP Management Consultants company, said that products which are included in the luxury category are cars, jewelry, watches (made of gold, platinum and jewels), furs, snake, crocodile and salamander skin accessories, private airplanes, jets, and boats.