The decision was made at a meeting on Thursday

Bulgaria’s parliamentary Committee on budget and finance has adopted at second reading the proposal for reducing VAT for restaurants, catering establishments, print and digital books and foods and diapers for little children. The tax is to be cut to 9% from 20%.

At the meeting on Thursday MPs voted for minimum social insurance income of 610 leva for lowly qualified staff and 800 leva for all the rest employees in the restaurants.

Few weeks ago Prime Minister Boyko Borissov said reducing VAT is a political risk but it will support some businesses during the COVID-19 crisis.

Finance Minister Vladislav Goranov warned the measure will reduce state budget revenue and may need to be compensated by increasing the general VAT rate or the corporate tax.

 

Редактор: Маргарита Стоянчева