The VAT (the value added tax) rise is the "ping pong ball" economists from the PNL (the National Liberal Party)-PD (the Democrat Party) Alliance have been playing with for some time now. President Traian Basescu himself has recently approached the need for VAT rise, stating his support for it as counterbalance to the cut on the CAS (health insurance contribution). If the VAT rise is decided, the first to feel the effect of it will be the common Romanian citizen. He/she will have to pay more for every product or service bought. Low income citizens are to be most affected by this change. The 16% single tax rate on income has favored citizens earning large salaries, even if it has not diminished the earnings of citizens with income lower than the average. On the other hand, the planned cut on the CAS is mainly after contributions paid by employers and hence it will not influence to the better the financial power of the employed. In other words, Romanians with low income will be the first to be harmed by the "costs" of a fiscal relaxation they have not even profited of. Even if they are not directly harmed by the effect of the VAT rise, companies will also get fewer orders, as citizens' power to purchase will decrease. Companies will get lower income. Analysts and businessmen do not expect this rise to lead to the annihilation of imported goods consume, but to the generalized decrease of orders. The latter will mainly affect Romanian producers of strictly necessary goods. (A.C., M.B.)