Tridge summary
A recent survey by KNSB indicates that the average price of bread in Bulgaria has seen a decrease of 1 to 11 percent since late June, following the government's decision to apply zero VAT on flour and bread as of July 1. The price drop is more significant for commonly consumed bread types, with up to 10.9 percent decrease. However, the reduction for other bread types is negligible. The president of the National Union of Bakers and Confectioners, Mariana Kukusheva, expects the bread price reduction to persist due to its social nature. She also highlighted the varying bread production costs and the need for state subsidization for high electricity costs. Kukusheva also clarified that bread is not being produced with Ukrainian wheat due to the lack of necessary certificates, ensuring that only safely sourced grain is used in Bulgaria.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The price of bread decreased on average by between 1 and 11 percent compared to the end of June. This is indicated by the results of the KNSB express survey conducted in the period August 29-31. The survey was conducted in 22 regional cities to assess the effect of the introduction of zero VAT on flour and bread with the budget update from 1 July. The data show that there is a more pronounced decrease in the mass-consumed varieties of bread - "White" and "Dobrudja" type, with between 10.6-10.9 percent. For other types of bread, the reduction is still negligibly low. The tendency in large retail chains to report a stronger reduction in the prices of various types of bread is maintained. The reported decrease in the price of flour is between 8 and 11 percent compared to the end of June. The reported falls are half of what would have been expected under zero VAT rates on both bread and flour, is the main finding in the union's analysis. The zero VAT on bread has an effect - the price ...
Source: Duma
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