site.btaUPDATED Parliament Exempts from Excise Duty Electricity, LNG and Natural Gas until June 30, 2025

Parliament Wednesday voted to exempt from excise duty electricity, natural gas and liquefied natural gas until June 30, 2025. It adopted conclusively parts of the revisions in the national budget, which lead to changes in the Excise Duty and Tax Warehouses Acts.

The zero excise duty passed on 117-110 votes with three abstentions.

The measure aims to support businesses and consumers amid spiking energy prices. The European Commission will be notified.

The MPs also voted to reduce to 9% (from 20%) the VAT for central heating and natural gas deliveries, and scrap the VAT for bread and flour. The two new rates (zero and 9%) will apply until July 1, 2023.

The zero VAT on flour will reduce budget revenues by between BGN 8 and 10 million in six months, Finance Minister Assen Vassilev told reporters late on Wednesday. After a consultation with experts, it will be decided what expenditure can be reduced accordingly.

A proposed increase in the excise duty on cigarettes, smoking tobacco, cigars and cigarillos, heated tobacco products and hookahs, as well as the introduction of excise duty on e-cigarette liquids, were voted down.

Deputy Prime Minister and outgoing Minister of Economy Kornelia Ninova took the floor during the debate to say that employers' organizations had approached her with concern because none of the three proposals related to aid for businesses had been adopted conclusively. She urged the MPs to find "a sensible solution and not leave the economy without support". She said this was an investment in ensuring predictability, preserving jobs and ensuring security for the difficult months ahead for Bulgaria.

Lyubomir Karimanski, the chairman of the parliamentary budget committee, urged Kristian Vigenin (BSP for Bulgaria) who presided over the sitting, not to allow "this rant from the deputy prime minister" to MPs.

Alexander Ivanov (GERB-UDF) commented that there were four proposals and Ninova did not say what exactly the government proposes.