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Raising the excise duty on alcohol will bankrupt small and medium-sized businesses

The gray sector will explode

Dec 11, 2024 13:54 101

Raising the excise duty on alcohol will bankrupt small and medium-sized businesses  - 1

The state is considering an increase in the excise duty on alcohol. This, according to the branch, busy in production and trade, means higher prices and an increase in the gray sector.

"Consumers don't understand when we talk to them in percentages. The excise tax is part of every bottle of alcohol we buy, and if it is one liter, the price includes BGN 4.40. If we increase the excise tax by 10%, the price of each liter bottle will be BGN 4.90. We will sell fewer liters," said the chairman of the "Spirits Bulgaria" association. Ralitsa Skorcheva-Slavova for "Bulgaria in the morning".

According to her, with the increase in the excise duty, there will be a drop in the sales of professionals from the sector with a double percentage.

"We requested an emergency meeting with the Ministry of Finance. We put forward 3 arguments: if the excise tax is increased, the collection will decrease. The gray sector will erupt. We are also talking about 1 in 6 with legally registered small brandy cauldrons. It will increase by more than 22% in a 4-year aspect. This is not good for the industry. We will increase the price in four consecutive years, because in the end it is a tax on the consumer", added Skorcheva-Slavova for Bulgaria ON AIR.

This is the first time the industry has been put in such a situation, explained Skorcheva-Slavova.

"We still cannot make a list of all the problems we will have from raising the excise tax. New ones appear every day and we are adding to the list of crashes. The meeting was organized in a flash and we had no time for the risk. We will not protest. This is not our way of working. Bankruptcy of small and medium-sized businesses is a threat," she pointed out.

According to her, we are not increasing the price of alcoholic products because the quality has become better.

"We are trying to conduct a dialogue in a confrontation that is escalating and intensifying with each passing day. The dialogue is that we must consume responsibly. This includes buying products only from guaranteed sites," commented the guest.