2024 Author: Jasmine Walkman | [email protected]. Last modified: 2023-12-16 08:29
The bread producers and the trade unions in our country for another year demand the bread tax to be reduced to 5%. They demand that the measure be introduced next year.
Currently, bread and all pasta in our country are made from Bulgarian raw materials. Their production is subsidized by the European and national budgets. Bakery currently generates about a billion levs turnover. It is taxed at 20%, which remains in the gray sector.
According to experts, it is time to create a regulatory and market economy in the industry. This is only possible by adding a differentiated VAT rate. If the VAT on bread is differentiated to 5%, this will lead to a lightening of the sector, as well as a reduction in the price by 12-13%. Thus, the profit will go to the state treasury, respectively and back to the people, and not as before - in the pockets of unknown entities and parties.
In favor of deciding whether to introduce this measure, the trade union points out that in all EU countries, essential goods are subject to VAT differently. Only in Bulgaria is the universal order followed. If the 5% tax is introduced, the market price of bread will decrease significantly, which is welcome for the Bulgarian producer.
According to the specialists from Podkrepa, the imposition of unnecessary taxes on goods in our country is completely unjustified. They go even further, arguing that basic necessities should be exempt from certain taxes.
This would allow consumers to choose better quality products on the market. Since this is currently impossible, they accept the idea of lowering the VAT on bread by up to 5%. According to them, this should happen with vegetables and the most commonly used goods.
If the government accepts the proposal for a lower VAT on basic necessities, the measure will take effect next year.
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