The zero daily rate will remain until the end of July next year. This is to be decided by the government within a month. Annie’s family eats 3-4 loaves of bread a week. The woman says that she did not feel the effect of the zero VAT on daily life, reports BTV.
“A year or two ago – BGN 1.80-1.90. Now it is over BGN 2. I expect the price to hold at this stage,” she says.
The industry is adamant that the lack of a tax rate was felt immediately – despite the expensive current, prices are down. They don’t expect another spike.
“Since in the case of flour, even if there is an increase in the exchange price now, we will feel it at a later stage, since we are currently using batches that are packaged for 3-4 months. At this stage, we have no difference in price,” says Nevena Aivazova, owner of a bakery.
According to economists, however, the effect of 0% VAT was short-lived and to date has no effect on the price of bread.
“For comparison, since the beginning of 2022 it has grown by 18%. By the way, in the same period, wheat has fallen by nearly 20%,” says Lachezar Bogdanov, Chief Economist at IPI.
A check of the media shows that white sliced bread in Sofia costs between BGN 2 and 2.20. The same type but locally produced in Yambol costs between BGN 1.50 and 1.70.
“The price of bread is high, the quality is not good,” believes Tsvetana Miteva.
Experts believe that these support measures are a risky game and could lead to the destruction of the tax system. The final decision on the bread tax is due in November.