site.btaNational Ombudsman, Trade Associations Urge for Scrapping VAT for Donated Food

National Ombudsman, Trade Associations Urge for Scrapping VAT for  Donated Food

Sofia, June 20 (BTA) - National Ombudsman Maya Manolova, the trade associations in the food processing industry, the National Food Bank, the Bulgarian Agency for Food Safety, and the Bulgarian Red Cross urge for scrapping the VAT on donated foods as of January 1, 2017. Representatives of the institutions signed a letter to this effect sent to Finance Minister Vladislav Goranov in which they also urge for including the proposal in the budget procedure for the 2017 budget.

The aim of new campaign is to ease the legal regulations for donations of foods and drinks.

Manolova provided figures proving the need of lifting the 20 per cent VAT on donated foods. Official statistics show that more than 1.5 million Bulgarians live below the poverty line, on less than 330 leva monthly. At the same time, 670,000 t of foods or 2,200 million servings are wasted annually in Bulgaria, which is enough to provide three meals a day, throughout one year, to all Bulgarians living below the poverty line. The food is wasted instead of being donated because donating food costs more than destroying it, experts from the food industry said.

The start of the campaign to scrap VAT on donated foods was given at a news conference hosted by Manolova. The initiative is a follow-up of an Easter charity campaign launched by the Ombudsman in April which raised 650,000 leva in cash while the donated foods totalled 360,000 leva.