Government Submits Draft Bill for Anti-Crisis Package to Help Mitigate Effects of Inflation

The Bulgarian government submitted a draft bill in parliament on 8 June 2022 to amend and supplement the 2022 Budget Law, including measures for the previously announced anti-crisis package to help mitigate the effects of inflation.

• An exemption from excise duty on electricity, liquefied petroleum gas, and natural gas;
• The introduction of a reduced VAT rate of 9% on central heating supplies for one year;
• The introduction of a reduced VAT rate of 9% on natural gas supplies for one year;
• The introduction of a zero VAT rate on the supply of bread for one year;
• The withdrawal of the reduced VAT rate of 9% on beer and wine supplies as part of restaurant and catering services from 1 July 2022, with such supplies reverted to the standard 20% rate;
• A reduction in the legal interest rate from the basic (base) interest rate (BIR) + 10% to BIR + 8% on overdue monetary obligations;

Source: orbitax.com

 

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