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© Government Information Press Service
In addition to public catering establishments, from the beginning of next year there will be a 20 to 9% VAT reduction for books, Prime Minister Boyko Borissov said today at a briefing in parliament. He clarified that for them the measure will not be temporary, but permanent.
“We have been considering this for a long time, now we have the opportunity to do it with a bill. This way we will pack people’s food and one is food and the other is spiritual,” explained the prime minister.
If the two proposals are approved, this will be the first time in many years that the government agrees to give in to VAT cuts. The reason is that this tax is the main source of income in the budget. Also, the discount for one area automatically leads to similar requests from other business areas.
Goranov is not satisfied, if he wants he can go
The Prime Minister made no secret that Finance Minister Vladislav Goranov is categorically against lowering VAT. However, Borissov clarified that the decision is political.
When asked if he trusted the finance minister, the prime minister said that he trusted him, but that he was not his boss and that if he was not happy, he could resign.
The reduced VAT from 20% to 9% for restaurants will apply within one year. After it expires, the tax may return to current levels if the income is lower, as the financiers predict.
“According to colleagues, we will lose BGN 150 million a year, but restaurateurs claim that revenue will increase due to the clarification of the sector,” Boyko Borissov said. Expect to see a reduction in restaurant prices as much as the 11-point tax in restaurants. According to Borissov, the budget will lose around BGN 12-13 million annually due to the VAT reduction on the books.
At the press conference, NFSB leader Valeri Simeonov announced that there will still be coupons for holidays in the country, but that only those who work on the front line with the infection will receive them: doctors, police, etc. Initially, the NFSB’s idea was to give such coupons to a wide range of people, but yesterday the proposal was not accepted by the parliamentary legal committee when adopting the new texts in the Health Law.
