„Minister Petkova commented that a total of 95 million leva is expected to be collected from bread and flour in total. VAT. This money will come from the pockets of consumers, not from those of producers".
This was stated by the Chairperson of the Management Board of the National Branch Union of Bakers and Confectioners Mariana Kukusheva to NOVA NEWS.
"Our concern is that a short-term policy is being implemented to quickly collect some funds that may or may not be collected. Zero VAT eliminates the gray sector among us. Because we have entered a regime of constant audits. Now we expect a 45% gray sector to reappear in the industry, which existed until June 2020, when this social measure was introduced to help the consumer”, explained Kukusheva.
According to her, from June 2020 to the end of 2023, 1.5 billion leva in taxes were paid to the state.
She explained that not all types of bread were exempt from VAT. She added that only 4 types were exempt from the rate - white, type, "Dobrudzha" and whole grain.
The price of bread has risen since the first day of the new year, because according to the law, 20% VAT on bread and flour is applied from January 1, she pointed out.
In her words, zero VAT on bread does not mean freezing prices, because its cost price is affected by conditions related to the global economy and domestic political factors.
Kukusheva also pointed out that the price of packaging has also increased due to the green economy, which requires investments.