IMF IS THE ONE INSISTING ON 20 % VAT FOR TOURISM

Views on BG | November 25, 2001, Sunday // 00:00

Finance Minister Milen Velchev admitted for Standart Daily

- Mr Velchev, what will be the destiny of the Customs Agency Director Emil Dimitrov?
- It depends on his work. To now, I'm moderately satisfied with Emil Dimitrov's activity. In October the customs revenues upped in comparison with the same period of the previous year. I'm not sure whether they upped by 15 percent, or by 15 million levs. We count on even better results.

- What is Chief Secretary of Customs Agency Ilyan Mateev guilty of?
- As far as I know, no particular guilt was found, but the checkup is going on. I do not want to make groundless accusations.

- Why has he been fired, then?
- You'd better ask Mr Dimitrov. Though it was me who said in the Parliament that he was fired, Emil Dimitrov furnished me with the information. I read in the newspaper that Mateev reportedly said that he was not dismissed and he himself was at a loss whether he had been fired.

- Why a competition was not provided to hire a foreign consultant on the customs and how was the British "Crown Agents" company selected.
- The reason not to provide a competition under the Public Procurement Act is that this activity is connected with some special security measures, because you are aware of the fact that the Customs Agency is in close interaction with the National Service for Organized Crime Combat. But this does not mean that the "Crown Agents" bid was not selected on competing grounds. We held discussions with several specialized companies providing consultancy services. Technically and financially, the offer of the "Crown Agents" was the best one.

- You expect the budget revenues to be overfulfilled. How it is to happen?
- The expected overfulfilment of the budget revenues will be by 2.5 percent. At the same time the expenditures will also be overfulfilled, mainly because of the additional investments program, under which 178 million levs have already been spent. It accounts for 0.7 percent of the GDP. There are arrears in some other spheres, too. Not to mention the National Insurance Institute deficit, which is to up till end-year by 240 million levs over the planned one. It is almost 1 percent of the GDP, that must be covered by the government.

- Are you to argue with the IMF over taxation matters?
- As for the taxation acts, we are not to argue any points with the IMF, unless we decide not to levy VAT on tourism. The IMF are unbending, as far as this matter is concerned. The cabinet agreed on differential rates; they insisted on 20-percent VAT rates, but you know that the VAT next year will be 7 percent. By Christmas we could reach an agreement with the IMF mission and sign it in line with the intentions, but formally, it could become a fact after the IMF Board approval, which could happen in January, but would be rather in February.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Views on BG » Be a reporter: Write and send your article

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria