site.btaBSP-United Left Insists on 0% VAT on Bread and Flour, Tax on Bank Excess Profits

BSP-United Left Co-Floor Leader Borislav Gutsanov told a briefing in Parliament that the formation will insist that the value added tax (VAT) on bread and flour remain at 0% and that banks' excess profits be taxed.

“We are surprised to see that the budget does not impose taxes on banks' excess profits, which is something we had commented on when we met with caretaker Deputy Prime Minister and Finance Minister Lyudmila Petkova,” Gutsanov said. He noted that the BSP's view and desire is that banks' excess profits should be imposed an additional tax.

“In this situation, the money that will be collected and can be used by the State budget will amount to BGN 457 million - a quite serious sum, which we cannot understand why the Ministry of Finance has so casually refused,” Gutsanov said. He announced that the parliamentary group intends to submit a bill to limit bank charges.

Gutsanov noted that the banks' excess profits are not being taxed, but VAT on bread is being raised again to 20%. “Another very interesting activity that has been carried out by the Ministry of Finance, with which we strongly disagree; we will insist that VAT on bread and flour remain at 0% so that we do not have an increase in the price of something that is a basic necessity,” he said.

Regarding the talks for forming a government with the first mandate, Gutsanov said that GERB have not approached BSP-United Left yet, and no conversation has been held.