„The texts of the bill on homemade rakia will be revised to prevent ambiguous interpretation". This was stated by Deputy Prime Minister and Minister of Finance Galab Donev on the air of „Hello, Bulgaria“ on Nova TV.
According to him, the purpose of the proposed changes is to prohibit the sale of homemade rakia, produced using unclear technology, in commercial establishments, restaurants, guest houses and other places.
„No one will go from house to house looking for rakia“, Donev assured. He specified that the sanctions are aimed at people who sell homemade rakia, and not at those who produce it for personal use. If the brandy is a gift, this is not a violation, but its sale is prohibited.
The Finance Minister emphasized that the bill is under public discussion and the texts will be changed after the reactions received.
► Donev: The new debt was withdrawn under good conditions
Regarding the new state debt of about 2 billion euros, Donev said that the financing was secured under good conditions for Bulgaria. He pointed out that the country is in an excessive deficit procedure, but according to him, the analysts' assessments of the economy and the measures taken by the government are positive.
► The tax on the excess profits of banks
Donev also commented on the proposal to tax the excess profits of banks. He described it as “just a guess" the claims that the measure will inevitably lead to an increase in loan interest rates.
„Over the past five years, banks have increased their profits by 588%. This represents excess profit", said the Deputy Prime Minister.
He also pointed out that with Bulgaria's accession to the eurozone, banks have been able to free up significant resources that they have so far held as reserves in the Bulgarian National Bank.
„A meeting with the Governor of the Bulgarian National Bank Dimitar Radev is coming up," Donev added. He stressed that he would not give up on the idea of taxing banks' excess profits. There is already a public dispute on the subject between the Ministry of Finance and the Bulgarian National Bank about the possible effects of the measure.
► Will the excess profit of retail chains be taxed?
The Minister of Finance also commented on the possible taxation of the excess profits of large retail chains. “The texts being prepared will take into account the revenues resulting from the implementation of new technologies and the offering of new products. If a business realizes significantly higher profits, there should be an opportunity for them to be taxed”, he said.
Donev pointed out that a similar approach was also used in 2022, when a European regulation introduced taxation of excess profits of energy companies.
► Less spending in state administration
“The government is also taking measures to limit spending. It is planned to restructure inefficient structures in state administration and reduce spending by about 750 million euros”, the Minister of Finance is categorical.
According to him, the goal is to reduce spending on various items in the budget, while at the same time seeking additional sources of revenue. The total effect of the measures, according to him, should reach around 2.2 billion euros.
► There will be cuts in the security system
Regarding spending in the security sector, Donev said that the goal is to increase efficiency. “Bulgaria has commitments to NATO that will be respected, but all structures must be reviewed”, he emphasized.
According to him, spending in the police was also discussed. Cuts are planned in positions that are not directly related to police activities.
► On diesel prices
Donev said that it is not correct to compare current diesel prices directly with those of several years ago. He recalled the change in oil supplies to Bulgaria after the refusal of the derogation for Russian oil. According to him, despite the increase in prices, our country remains among the countries in Europe with the lowest fuel prices.
► Budget 2027
Regarding the budget for next year, Donev said that Bulgaria must strictly comply with the parameters set for the country due to the excessive deficit procedure.
„On October 5 and 6, representatives of the European Commission are expected to arrive to discuss the parameters of the 2027 budget. By October 15, Bulgaria must present its budget framework to the EC. All deadlines will be met, and after October 15, the draft budget will be submitted to the National Assembly," he promised.
► Donev on the euro and prices
Donev also commented on the increase in the price of goods after the introduction of the euro. According to him, the currency itself is not the reason for the price increase. However, he stated that the then government did not make a good enough assessment of the country's readiness to join the eurozone and did not take enough measures to protect consumers.
According to him, the lack of sufficient control contributed to the rise in prices and inflation.
► Donev: Iliyan Filipov is not among the donors of „Progressive Bulgaria“
Donev also commented on the murder of businessman Iliyan Filipov. „Filipov is not among the individuals who donated funds to the „Progressive Bulgaria“ coalition. The list of donors has been submitted to the National Audit Office," the Deputy Prime Minister announced.
Donev indicated that he was not aware of whether Filipov had ties to former Interior Minister Ivan Demerdzhiev. "This is the job of law enforcement agencies and they will do their job," he stated.