Reduced VAT is in favor of the wealthy, says Simeon Djankov – Bulgaria

© Nadezhda Chipeva, Capital

Reducing VAT in restaurants from 20 to 11% is a measure in favor of the wealthy, but it does not support tourism. This opinion was expressed to BTV by Simeon Djankov, Minister of Finance in the “Borisov 1” cabinet, whose mandate was the global economic crisis that started in 2008.

The day before, Prime Minister Boyko Borissov launched the idea of ​​a differentiated VAT for restaurant services categorized under the Tourism Law, arguing that the state should help them survive after banning them from work due to the spread of the coronavirus.

This will not help the tourist service. One problem for tourism is that there is no transportation and people don’t go out, Djankov said.

According to him, the money goes to the wealthy owners of large tourist establishments and, therefore, the measure should be called “a measure to encourage the wealthy.”

Djankov suggested that the situation as of 2010, when Prime Minister Boyko Borissov wanted to reduce VAT, would now be repeated, but “was later deterred.”