The idea of a 9% VAT on fuels is “extremely populist“, said MP from “Progressive Bulgaria“ Zdravko Markov to the Bulgarian National Radio. According to him, reducing the tax for all consumers will not work for either the economy or the state budget.
“We will take targeted measures, not “on a blanket basis”, because this feeds the deficit and will be pro-inflationary”, said Markov. He specified that different options are being discussed, but did not give specific parameters. According to him, the aid should be directed at the most vulnerable part of consumers and businesses.
What GERB-SDF is proposing
GERB-SDF has submitted a draft for emergency measures due to high fuel prices. It includes a temporary reduction in excise duty on gasoline and diesel, as well as clarification of the possibility of reducing VAT on motor fuels to 9%.
The proposal did not reach the plenary hall due to the lack of an opinion from a competent committee and an unexpired procedural deadline, the Bulgarian Telegraph Agency reported. GERB-SDF insists that the Finance Minister submit a reasoned request to the European Commission through the Council of Ministers for the temporary application of excise duty rates below the minimum European levels.
According to the estimates presented by MP Krasimir Terziev, if the tax reduction is fully transferred to the final price, filling up 50 liters could become cheaper by about 20-21 euros. With a combined reduction in excise duty and VAT, a decrease of approximately 40 euro cents per liter is expected. The party also proposes public control over whether the tax discount actually reaches consumers.
Markov does not expect a shortage of diesel
Markov said that the lifting of the ban on diesel exports will not lead to queues at gas stations. According to him, the country consumes up to 190 thousand tons of diesel per month, while “Neftochim Burgas“ produces between 240 and 260 thousand tons.
He pointed out that the refinery works with diversified supplies and there is no immediate danger of fuel shortages. According to Markov, limiting production capacity could lead to an increase in prices.
The MP also said that he does not expect a risk to electricity supply in the winter. According to him, the gas storage facility in Chiren was 80% full as of October 11, and “Toplofikatsiya Sofia“ has assured the Ministry of Energy that the network will be ready for the start of the heating season.
Sources: bnrnews.bg, bta.bg