Prices of certain luxury goods are not likely to drop following E.U.’s request to Romania and Bulgaria to eliminate overtaxation
The European Commission has asked Romania and Bulgaria, the latest countries which joined the E.U. to eliminate overtaxation and duties on certain product categories considered luxury. For instance, in Romania, the duties on perfumes amount to 15%, on furs to 45%, jewelry to 15% and on yachts up to 50%. These product categories are still considered luxury from the reminiscent fiscal codes.
However, in the case of perfumes and jewelry it is highly unlikely retailers will drop prices, especially considering the current economic crisis. Another reason is that there are luxury jewelry brands which impose certain price ranges. The same applies to perfumes which are sold at RRP – reccommended retail price.
In the case of furs and yachts we might see prices fall by 10 to 20%, especially since the price ranges are more flexible.