Bulgaria: They reduce the VAT on bread to 0% at the expense of wine

Published May 18, 2022

Tridge summary

Bulgaria's government has announced a package of measures to support citizens, including a zero rate of value added tax (VAT) on bread, and a increase in VAT on beer and wine to support the subsistence price for bread. The package also includes tax relief on natural gas and methane, a discount on refueling with E95 petrol, diesel, methane and propane-butane, and a reduction in the VAT on heating and hot water. Some of these measures require legislative changes and will be included in the activation of the budget, with some taking effect on July 1st and others at a later stage. A permanent measure will be to increase the threshold for mandatory VAT registration from BGN 50,000 to BGN 100,000, effective January 1, 2023. The package will cost the state budget BGN 2 billion.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The introduction of a zero rate of value added tax (VAT) on bread is part of the government's package of measures to help Bulgarian citizens. This was announced by Prime Minister Kiril Petkov at a briefing at the Council of Ministers. Vote: Would you support the exemption from tax subsidies? "We will compensate with an increase in VAT on beer and wine - it returns to 20%," said the Prime Minister, adding that this will support the subsistence price for Bulgarian consumers, not that of alcohol. Natural gas and methane are also provided for tax relief in the anti-crisis package. Until the end of the year, all consumers will be able to take advantage of a discount on refueling with E95 petrol, diesel, methane and propane-butane in the amount of BGN 0.25 per liter. For a one-year period, the VAT on heating and hot water becomes 9%. The Minister of Finance Asen Vassilev clarified that some of the measures require legislative changes and will be included in the activation of the budget. ...

Source: Agri