Will Bulgaria Have a Stable Government After Yet Another Election in June? Our Readers Have Spoken
On our Facebook page, readers were asked about Bulgaria's stability after the June elections
Bulgaria will introduce a flat 9% value-added tax (VAT) in the tourism sector as of the beginning of April next year under amendments that parliament adopted at second reading on Wednesday.
The legal changes were tabled to parliament by the center-right government, but drew the ire of the right-wing Blue Coalition and the ethnic Turkish Movement for Rights and Freedoms, which proposed alternative texts only to see them turned down by the majority.
The introduction of a flat VAT for the tourism sector comes in response to the demand of the European Union that Bulgaria should harmonize tourism VAT, which currently stands at 7% for organized groups and 20% for individual tourism.
The government has said that the new tax had to be introduced at the beginning of 2011, but was delayed until April in bid to avoid messing up the tour operators business plans for the winter season.
The idea for a flat tourism VAT tax has sparked an outcry from tour operators and hoteliers, who called it "ridiculous" since all contract deals with foreign tour operators for the clients' vacations in Bulgaria in 2011 have already been signed and called for postponing the new tax until 2012.
Bulgaria approached the European Commission (EC) with an inquiry on the possibility to introduce a unified value-added tax (VAT) in the tourism sector from 2012, as proposed by the industry, but the proposal was rejected.
The government has defended its decision by saying this is not a fiscal measure, but a bid to avoid a sanction by Brussels for not putting on a par the two types of tourism - individual tourism and tourism for organized groups.
Tourism is one of, if not the most important industry for the perennially cash-strapped Bulgaria - it not only provides nearly 10% of the country's GDP, but is also a significant source of foreign currency and jobs. The industry has also been traditionally the favorite sector of those in power - it is the only one that enjoys a reduced value-added-tax.
Following its EU accession, Bulgaria was expected to capitalize on its tourism industry potential and benefit from the increased exposure and easier accessibility to its markets, but critics say it never made it to the breaking out of the champagne.
The economic growth that Bulgaria saw over the last few years was built upon the growth in construction, real estate and tourism sectors. The industry says the government should focus its efforts on the tourism sector and introduce a package of anti-crisis measures, now that the construction and real estate sectors are facing a collapse.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
As the May holidays mark the onset of sea tourism, Bulgarians and foreigners preparing for their annual getaways are facing a stark reality: trips this year will come with a heftier price tag
In an unexpected turn, Bulgaria and Turkey have been notably absent from the list of the ten cheapest European summer destinations for British tourists
Bansko, Bulgaria's premier mountain resort, experienced a surge in winter tourism, with more than 190,000 visitors flocking to its slopes during the season
Recent data from the German Tourist Board show a discernible trend, indicating an increased interest among Bulgarians in visiting Germany
In a momentous occasion marking the entry of Bulgaria and Romania into the Schengen area by air and sea, Balchik Airport is set to witness a remarkable gathering of more than 20 planes from Romania
The flights will operate every Wednesday and Saturday.
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022