„Let's reassure the industry that this return of the rate is temporary, because there was no time to look at the budget“.
This is what he said on the show „This Morning“ on bTV Richard Alibegov, Chairman of the Bulgarian Association of Restaurants, regarding the VAT refund for restaurateurs at 20%.
The tax was reduced for the industry to 9% from the beginning of 2020 in connection with the COVID-19 pandemic.
“In December, we from the association met with the political leaders who have so far supported the rate - GERB-SDF and “DPS - New Beginning“, “Vazrazhdane“ and BSP. We received assurances from them that at the first moment when either a budget extension or a new budget is considered, the rate will be extended for restaurants, for bread and for sports services until the end of 2025“, commented Alibegov.
He emphasized that the association has been fighting for this rate for a long time, because since 2008 in Europe, in 24 countries, the rate for hotels and restaurants is 9%.
“In recent years, we have been presenting reports to the deputies and the Ministry of Finance, and they show that there are no losses for the budget. For 2024, we will pay 200 million leva more in general taxes than in 2019“, also announced the chairman of the Bulgarian Association of Restaurants.
Regarding the increase in prices in restaurants, he recalled that since January 1, the prices of electricity, water, bread and the minimum wage have increased in Bulgaria.
The association called on the industry not to raise prices due to the increased VAT, expecting the rate to return to 9% soon.