Restaurants across Bulgaria are set to temporarily shut down today in protest against the reinstatement of the 20% Value Added Tax (VAT) for the industry. The sector is demanding that the previous 9% rate be restored, arguing that the tax hike will push many businesses back into the gray economy.

In addition to closing their establishments, some restaurateurs plan to block key roads and intersections, with demonstrations expected in multiple cities, including Varna, Plovdiv, Pazardzhik, Kardzhali, Lovech, and Montana. In Veliko Tarnovo, the Sofia-Varna highway will be blocked for 30 minutes at the "Kachitsa" roundabout, while in Ruse, protesters will gather at the "Danube Bridge" parking lot, according to Emil Kolarov, chairman of the Association of Establishments.

"In almost all of Bulgaria, businesses will participate in some form," Kolarov stated, emphasizing that the entire industry stands in opposition to the tax increase. Restaurateurs and hoteliers from Southwestern Bulgaria, including Kyustendil, Dupnitsa, Blagoevgrad, Bansko, and Sandanski, will also join the demonstration. Protesters will gather at a training ground near Blagoevgrad at 3:30 p.m. before marching towards Simitli. Vasil Dimitrov, deputy chairman of the Union of Restaurateurs, assured that the protest would not cause major traffic disruptions.

In Kardzhali, industry representatives are expected to block a central intersection at 4 p.m., followed by a march along Bulgaria Boulevard towards the city's bus station. Kadir Mustafov, regional coordinator of the Bulgarian Association of Restaurants, pointed out that Bulgaria is among the few European Union countries with such a high VAT rate for tourism-related businesses.

The industry argues that the lower 9% VAT rate, introduced during the COVID-19 pandemic, helped over 80% of restaurants operate transparently. With the return to the 20% rate, they fear that a significant portion of the sector will revert to unregulated practices, harming both businesses and the state.

Dimitrov highlighted that in Germany, the VAT for restaurants was initially set at 9% but was later reduced to 7% following discussions between the government and industry representatives. Bulgarian business owners are urging authorities to reconsider their decision and maintain the lower tax rate permanently.

Restaurateurs warn that if parliament does not approve the 9% VAT rate in the upcoming budget vote, they will escalate their demonstrations with a large-scale national protest in Sofia. They insist that the government must honor its previous commitments to the sector.