site.btaEconomy Minister Ninova: "Lower VAT on Fuels, Electricity, Foods Can Press Prices Down"

For at least four years now, the Bulgarian Socialist Party (BSP) has been campaigning for a reduction of the VAT rate on staple foods, medicines and children’s goods, and this is a priority for the party, Deputy Prime Minister and Economy and Industry Minister Korneliya Ninova said on Tuesday, quoted by the BSP in a press release. The BSP leader was commenting on Monday's ruling coalition meeting.

"The BSP is mainly concerned with the price spikes and impoverishment," Ninova stressed, adding that one of the ways to tackle these issues is by lowering VAT rates and excise duties. In her words, if introduced, a zero VAT rate on fruits and vegetables will support local production. The best option would be to keep this measure indefinitely, according to Ninova.

The Socialists also propose taxing the excessive profits that energy companies have recently accumulated due to inflation, Ninova added. She added that the proceeds of such a tax could cover social costs and aid the economy and business.

The BSP has proposed an extension of the BGN 300 per MWh compensation that are paid to businesses for the electricity spike after the expiry of the measure in April because Bulgarian companies are currently in extreme difficulty, Ninova said.