site.btaSocialists, GERB Argue about Food, Medicine VAT Reduction

112 ECONOMY-VAT-FOOD-MEDICINES - AMP 1

Socialists, GERB Argue about
Food, Medicine VAT
Reduction


Sofia, June 5 (BTA) - The Bulgarian Socialist Party (BSP) is
tabling bills for the reduction of VAT on milk, meat, flour and
products made of flour to 5 per cent, outgoing BSP Chair
Kornelia Ninova told a briefing on Wednesday.

Ninova declared that the time has come for serious discussion of
priorities, underscoring that for the BSP those are poverty,
inequality and the demographic crisis. Another bill for tax
reliefs for young families that have worked in the last five
years will also be tabled. This will leave them with about 600
leva available income a year.

The left will table again a bill on recalculation of all
pensions and increasing social benefits for the poor because of
the increase of electricity, heating and hot water prices
expected in the middle of the year.

In response, GERB's Toma Bikov commented that the motion for
reduction of VAT for bread had already been rejected once as
there were no guarantees that the prices of bread would
decrease. However, he said that his party is open for talks but
the decision will be to the benefit of all.

Parliamentary labour committee chair Hasan Ademov said that the recalculation of all pensions is just but it requires considerable financial resources and will cost an additional 600-700 million leva each year.

Of lowering the VAT rate for certain items, Ademov said that this will decrease tax revenues. If the VAT rate is decreased and the end price isn't reduced then the measure will be irrelevant for the interests of the consumers and will only generate more revenues for traders. LI/BR,PP