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© Julia Lazarova
A day after Prime Minister Boyko Borissov promised a lower value-added tax for restaurants and books, MRF MPs Delyan Peevski, Yordan Tsonev and Mustafa Karadayi introduced amendments to the VAT Law that sets a lower tax on nights. hotel and for some children’s products.
According to his proposal, VAT should be reduced to 9% for “accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and rental of places for camps or caravans”.
A 9% VAT is also offered on “food for children under 3 and pharmaceuticals for children, including diapers.”
Yesterday, after a meeting with representatives of the hotel and restaurant industry, Prime Minister Boyko Borissov promised a VAT reduction of 20 to 9% next year for restaurants and the entertainment sector categorized under the Tourism Law, and Later it became clear that such a reduction is being prepared for books.
If the proposals are accepted, this will be the first time in years that the government agrees to give in to requests to cut VAT, which is the main source of revenue in the budget. For almost 42% of its income, the state depends on VAT. According to the recently updated budget law for 2020, the Ministry of Finance plans to collect BGN 10.6 billion from this tax. Borissov himself said yesterday that Finance Minister Vladislav Goranov strongly opposed the tax cut.
MRF businessman and MP Delyan Peevski spoke last year about reducing VAT on books, medicines and bread. Borissov himself later stated that within his government’s mandate, the tax laws would not change.
Yesterday, the vice president of the parliamentary group MRF, Yordan Tsonev, announced that the party supports the current proposal of the ruling party, and announced that it would request a tax reduction for all children’s products intended for children up to 3 years old. He clarified that the request is a 9% tax on food, clothing, toys and “everything that is intended for children up to 3 years old”, which, however, is not included in the currently proposed texts.
