Bulgaria could reduce the VAT on food, as Romania did, the Bulgarian Minister of Economy, Bozhidar Lukarski said Thursday for the TV channel Nova TV.
Bulgaria applies a value added tax of 20%, excluding the tourism sector, in which the VAT is 9%.
Asked about the reduction of VAT for food products which Romania lowered from 24% to 9%, Lukarski did not exclude the option that the Bulgarian government might take such a measure.
"Romania has had a 24% VAT for a long period of time. As I said yesterday in the Government meeting, all this while Bulgaria has not imposed such a VAT on its citizens as high as in Romania. In this respect we can say we had a better situation than Romania. Given the benefits that this measure brings to the Romanian economy, we could do us this too, " Petkov said.
Lukarski said that the Ministry of Economy analyzed the reporting threshold for VAT increase from 50,000 leva (25,000 euros) to 200,000 leva (100,000 euros) to encourage payments by small and medium companies, while the EU limit is 100,000 euros, according to Novinite.