Financial and business news from Bulgaria

Parliament discusses changes to VAT law

Finance Minister Vladislav Goranov is not present for now,
the head of the budget committee Menda Stoyanovae is in the hall. The two expressed a sharp disagreement to differentiated rates and were notoriously not in discussing the projects in the committee responsible

MEPs started discussing amendments to the VAT law, which provide for the introduction of differentiated rates for indirect tax. Finance Minister Vladislav Goranov did not attend the debates so far. Budget Committee head Menda Stoyanova is in the hall. The two were absent when the law was passed in the leading budget committee. Hours before discussion in the committee, the finance ministry sent MPs a position warning that if all proposals to cut the inputs tax were passed, the losses to the Treasury would approach £1.8bn. Minister Goranov's experts warned that if this happens, the rate for everyone else should increase to 24%. The other alternative to offsetting losses is increasing corporate taxation from 10 to 17 -18%.

The Commission put to a vote all 6 projects filed in the parliamentary record. In the vote, a majority received the draft of Krasimir Tsipov from GERB, which provides lower VAT for restaurants and books. As each parliamentary group voted in favour of a draft tabled by “her” MPs, a majority received only this option for changes. The rest, who envisage differentiated rates for basic foods, medicines, fitness, diapers and children's goods, did not receive a sufficient number of votes. It did not collect enough votes and Valeri Simeonov's proposal for vouchers for civil servants who are on the front line in the fight against the pandemic. It was written in the decision that between the two readings in committee will move towards pooling projects without specifying which ones. A day after the meeting of the commission, after the Coalition Council, Iskren Veselinov from the OP said that all contradictions over the changes were cleared and that when the projects were united, the philosophy of the law would be respected.

Related news