From July 1 to December 31, 2024, the maximum overprice of white bread “Dobrudja“ and type becomes 15%. The changes were recorded in the VAT Law. This will create a problem with the supply of some types of bread, as well as increase the price of daily bread, commented the industry.
The decision taken by the previous parliament at the end of April also includes extending the zero VAT rate for bread and flour until the end of this year.
Parliament assigned two ministries – of the economy and finance to prepare an analysis of the already adopted legislative change, but there is no such analysis to this day.
The Association for Modern Trade explained that such a decision affects not only traders, but also consumers, and in the long term. The legal change will be felt most strongly by retailers, because with the marginal trade markup, they will hardly be able to cover their expenses such as transport, warehouse, rent, labor, electricity and others.
It is not excluded that some types of bread (those that fall under regulation) will disappear from the shelves. This, in turn, will lead to a decrease in their demand, and hence will harm producers and limit consumer choice.
To date, the price of “Dobrudja“ and the standard bread in the various food chains ranges in price from BGN 1.99 to BGN 2.19. White bread sliced toast of 550 g costs on average BGN 2.49. Country bread of 450 g can be bought for BGN 3.29.