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The parallel wine economy costs Romania hundreds of millions

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ADAR

ADAR draws attention to a structural imbalance: between compliant producers and an untaxed market that is out of control.

Romanian wine is talking more and more often about quality, terroir and identity. But, beyond this visible evolution, there is a less discussed reality: a significant part of the market remains outside the tax system. According to the Association of Authorized Tasters in Romania (ADAR), about 200 million liters of wine are sold annually without taxation — a quantity that not only distorts the market, but also limits the development of the sector.

A major economic loss

ADAR estimates indicate a direct impact on the state budget: if these volumes were taxed, Romania could collect over 570 million lei from VAT alone.

This loss is not only accounting. It reflects a fragmented market, where part of production operates outside the rules, while compliant producers incur significant administrative and tax costs.

Causes of a persistent phenomenon

According to ADAR representatives, the problem is not a singular one, but the result of a combination of factors:

  • lack of traceability in grape circulation
  • Artificial fragmentation of production below administrative thresholds
  • Legislative inconsistencies that allow the perpetuation of the shadow economy

These elements create a system in which control is difficult and the differences between tax and informal operators become increasingly pronounced.

Pressure on the right manufacturers

In this context, manufacturers who follow the rules face a paradox.

“In this context, the treatment applied to compliant manufacturers becomes disproportionate. Although the excise duty on wine is low and does not generate significant budget revenues, the associated administrative obligations, especially guarantees and procedures that block capital, create real pressure on the sector and limit its ability to invest and develop,” ADAR reports.

The organization emphasizes the emergence of a structural imbalance:
“A structural imbalance is thus outlined: the taxed area is overregulated, while the non-taxed area remains insufficiently controlled.”

Dialog blocked, delayed solutions

Despite the signals drawn by the industry, dialogue with the authorities remains limited.

“Despite the constant efforts of ADAR and representatives of the sector to open a dialogue with the Ministry of Finance, all the meeting proposals formulated so far have been postponed, without a concrete result,” the organization shows.

This lack of coordination delays the implementation of measures that could balance the market.

Wine, more than an agricultural product

Beyond the fiscal dimension, the stakes are much higher.

“In the absence of a direction correction, Romania risks missing an economic and image opportunity. Wine is not only an agricultural product, but a vector of development that can support tourism, exports and the construction of a coherent country brand”, ADAR emphasizes.

In order for this potential to be harnessed, coherent public policies are needed:
“However, capitalizing on this potential depends on the ability to build public policies that clearly distinguish between own consumption and economic activity, to increase traceability in the production chain and to intervene where evasion is real and quantifiable, in parallel with simplifying the administrative framework for compliant operators”.

Between tradition and responsibility

The wine market in Romania is in a moment of transition. On the one hand, there is a creative effervescence and an increase in quality. On the other hand, imbalances persist that affect long-term sustainability.

The question is not whether Romanian wine has potential — but whether the system that supports it is ready to capitalize on it.

Because, in the end, the future of wine is not only decided in the vineyard or in the winery, but also in the way it is understood, regulated and supported.

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