Bulgaria Considers Zero VAT on Essential Foods to Ease Inflation

• Bulgaria’s parliament is considering a draft bill to set 0% VAT on essential foods and drinks from the NSI “small consumer basket.”
• The measure aims to ease inflation and reduce costs for low-income households by cutting VAT from 20% to 0% on basic items like bread, dairy, and meat.
• Lawmakers cite euro adoption-related inflation, geopolitical factors, inequality, and poverty as reasons for the proposal.
• The bill says lost food VAT revenue could be offset by higher VAT receipts from fuels, and it would not add administrative burden.
• If approved, it would take effect with the 2026 state budget, with ministries given two months to issue implementation rules.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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