The Value Added Tax (VAT) for fuels cannot be lowered, Bulgarian Finance Minister, Simeon Djankov, firmly declared Tuesday.

Djankov pointed out the cabinet will adhere to its policy to reduce VAT for everyone, if and when the budget would allow it, but not for just one sector.

The Minister stated he would present at the Wednesday meeting, between the government, the carriers and the producers and merchant of fuels, information comparing fuels VAT in all EU countries, showing Bulgaria has the lowest VAT rate.

Djankov will also provide proof fuels in Bulgaria have the minimum for the EU excise, which cannot be lowered further either. He said the cabinet has received a response from Brussels on the subject, but refused to elaborate on details.

Meanwhile, the Finance Ministry's press center distributed the ECOFIN Ministers Statement on Policy Response to Higher Oil Prices.

The statement points out that the in light of the present situation in global energy markets, the Ministers confirm the Manchester Agreement from September 9, 2005.

"Specifically, Ministers emphasize their continuous effective coordination in reaction to rising oil prices and agreed that distortinary fiscal and other policy interventions that prevent the necessary adjustments should be avoided. In particular, Ministers confirm that where short-term targeted measures are taken to alleviate the impact of higher oil prices on the poorest sections of the population, they should avoid distortionary effects. Beyond any short term measures, Ministers highlight the importance of structural reforms to make the EU economy more resilient to shocks," the statement reads.

Despite his firm position on VAT and excise duties, Djankov assured the State has many tools to deal with the skyrocketing fuel prices.

"We already have received proposals. We are examining them one by one and we will discuss them tomorrow," the Minister said, again without giving more information on what exactly these proposals are.