Finance minister opposes the idea of lower VAT on bread

Bulgaria’s Minister of Finance, Vladislav Goranov, continues to oppose the proposals for lower value added tax on bread. Goranov is firm that the ruling coalition has undertaken...

18:36, 25.09.2018
Finance minister opposes the idea of lower VAT on bread

Bulgaria’s Minister of Finance, Vladislav Goranov, continues to oppose the proposals for lower value added tax on bread. Goranov is firm that the ruling coalition has undertaken and will fulfill its commitment not to change taxes. According to him, the effect of so-called. 'differentiated VAT' for commodity prices is quite controversial.

Vladislav Goranov, Minister of Finance: I do not see any problem of the society solved through the taxes. Differentiating VAT for one or other commodity opens an endless debate on VAT differentiation. If the ultimate effect would be a decrease in the prices of certain goods, there is a clear guarantee that this will not happen or the effect will be short-lived. As a result, it is likely that margins of profits for traders and producers will be expanded to acceptable levels for the market, after which the end result will be only confusion of the state's tax system and budget losses.
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