The government closes the subject of a reduction in value added tax (VAT). The talks are being terminated because they contradict one of the points in the coalition agreement between GERB and the United Patriots, namely that within the mandate of this government tax laws should not change. This was announced by Prime Minister Boyko Borisov after today's Coalition Council.
As a reason for this, he pointed out one of the members of the coalition program, which demands that the tax legislation within this mandate should not be changed. Borisov urged the issue not to debate more, as any appeal to reduce VAT goes against the coalition agreement.
DPS announced a reduction in VAT on books, medicines and the food sector, and began talks and consultations with representatives of the various industries. The BSP also announced they demand a reduction in value added tax. They have submitted to Parliament a bill offering a reduction in VAT for flour, bread, meat, eggs and milk at 5% and for medicines at 9%.
At the last meeting of the National Council for Tripartite Cooperation, the government, business and trade unions united against this proposal. Finance Minister Vladislav Goranov described the proposed change as the worst instrument for achieving justice and warned that lowering VAT would require a mandatory lifting of the insurance.