site.btaParliament Rejects Zero VAT for Staple Foods, Medicines, Energy Carriers

Bulgaria's Parliament on Thursday voted, 73-66 with 48 abstentions, to defeat a bill moved by Vazrazhdane on a zero VAT rate for supplies of staple foods, medicines and energy carriers. The votes in favour came from GERB-UDF, the Movement for Rights and Freedoms (MRF) and Vazrazhdane.

The draft legislation concerned food products and beverages of the small consumer basket, water, natural gas, electricity and central heating for household users, medicinal products and medical devices.

During the debate, a Continue the Change MP argued that the motion is unfeasible and populist. A There Is Such a People lawmaker insisted on hearing the minister or a deputy minister of finance for clarification of the issue, but National Assembly Chair Nikola Minchev countered that the presence of Cabinet members was unnecessary because the bill was introduced by MPs.

Vazrazhdane Floor Leader Kostadin Kostadnov said that the Finance Ministry estimates that a zero VAT rate would cost the Exchequer some BGN 2 billion. He argued that "time will tell whether Vazrazhdane's proposals are unfeasible, all the more that a zero VAT rate on foods and medicines is already an established practice in the EU."