The Budget Committee voted to cancel the excise tax on propane-butane until the end of 2026.

The Budget Committee voted to exempt propane-butane and motor fuel from excise tax from October 1 until the end of the year. The damage to the tax authorities is estimated at 20 million euros.

The measure is due to high fuel prices caused by the geopolitical situation, and which sectors will be supported and what is the damage to the tax authorities, explained Deputy Minister of Finance Lyudmila Petkova, specifying that LPG is the designation of propane-butane:

"The total is 20 million euros, with 17 million euros being the effect in relation to LPG. In fact, it is mainly used by public transport and there the support is 17 euro cents per kilogram. So in fact, a huge part of the proposed measure supports public transport and from there people with lower incomes. Separately, people with lower incomes drive cars with LPG".

Vladislav Goranov from GERB – UDF warned that the measure was emotional and urged:

"If these 20 million euros are too much for you, think about how to support, for example, the carriers in public transport in individual settlements through the expense, because there really is a problem there".

Martin Dimitrov from "Democratic Bulgaria" added:

"The measures are still very limited in scope".

The propane-butane measure was announced last Friday as part of the government's measures against inflation and drafted as a bill by deputies from "Progressive Bulgaria".

The Budget Committee's decision is on first reading.