Bulgaria rules out promised VAT rate cut
- European News
- 24 July 2012 | Richard Asquith
Simon Djankov has confirmed that Bulgaria is no longer scheduling a cut in the Bulgarian VAT rate. There had been a plan to reduce the standard Bulgarian VAT rate by 1% from 20% to 19% by 2013.
However, opposition from all parties in Parliament to the move means that the government has backed down, and will instead consider changes to the personal tax regime.
Over the past two years there have been numerous pronouncements on plans for both cuts and rises to the Bulgarian VAT rate. This has reflected the varying performance of the economy in the midst of the European and global slowdown.
Bulgaria has been one of the few countries that has been able to resist a rise to its main consumption taxes – see all EU VAT rises - in recent years. Nearby countries, including Hungary, Greece and Romania, have all had to raise their VAT rates to cope with shrinking government revenues.