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Bulgarian Economy Minister Traikov is apprehensive about the idea of the Borisov government to up the VAT. Photo by BGNES
Bulgaria’s Economy Minister Traicho Traikov has expressed misgivings about the idea of the Borisov government to increase the value-added tax.
“The increase of the VAT is not a measure that is implemented in order to stimulate the economy. This is a measure which is taken when there is no other way out,” Traikov declared in Sofia Thursday afternoon.
He stressed that the potential increase of the VAT is yet to be discussed with the trade unions and the business sector within the Council for Tripartite Cooperation, and that the government has not made a final decision on whether to go for the measure yet.
Earlier on Thursday, Bulgarian Prime Minister Boyko Borisov said the government was very likely to increase the VAT but that after a certain period it will decrease the tax below its current level of 20%. In his words, the options being considered at the moment are for increases up to 25%, and the government will make the final decision on May 5.
“The increase of taxes is never a good idea, this is clear. It is a way to inject more money into the state budget, and a measure that is taken when the budget has got to be propped up. Its effect is always the opposite. No formal decision has been made yet. A decision will be made by the Cabinet whenever any proposals are submitted to it,” explained Traikov, the Minister of Economy, Energy, and Tourism.
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