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Finance Ministry proposes increase of VAT for restaurant business back to 20%

Photo: Ani Petrova, BNR

The VAT rate for restaurateurs to become 20% again is one of the measures in the tax laws proposed by the Ministry of Finance. During the Covid epidemic, the tax rate for the industry was reduced to 9%. According to Minister Asen Vasilev, its restoration to pre-coronavirus levels has been discussed with the restaurant industry.

Assen Vassilev has received the assurance of their representatives that they will develop measures to lighten the business, as well as to raise the insurance thresholds of workers above the minimum wage. "If the effect of lightening is greater than raising the rate, we can consider possibly to keep the 9% rate, but only if a very serious complex of measures comes into play", emphasized the minister.

Among other measures discussed is the return of the patent tax for the smallest traders. Basic taxes for citizens and businesses remain unchanged.

As for next year's state budget, the goal is to keep the deficit within the 3% of the Gross Domestic Product permitted under Maastricht.

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