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Deyan Nikolov from Vazrajdane: It is most appropriate to lower VAT on food

The anger in society is due to high inflation over the last 3 years, said Nikolay Valkanov - Executive Director of the Association for Modern Trade

Feb 15, 2025 20:06 113

Deyan Nikolov from Vazrajdane: It is most appropriate to lower VAT on food  - 1

Measures must be taken, but they must be done through the tax system, VAT on food must be reduced, as is the case in a number of European countries. This is the most appropriate way to regulate and reduce the prices of food products. If a law is drafted that controls everything from the manufacturer to the distributors to the food chains, no less turmoil will be created in the trade process, which may work, but there is also a great risk that it will not work.

This was commented on to BNT by Deyan Nikolov from "Vazrazhdane".

In his words, when the state intervenes in the economy, it fixes one thing and ruins five others.

"There should be intervention, but I see it through the regulators, since it seems that there is a cartel in the sector, especially in the large food chains. Certain products in Western Europe are cheaper than in Bulgaria, which is both logistically and economically strange. This means that there is no strong competition in Bulgaria," added Deyan Nikolov.

I am far from thinking that there is no corruption in the regulators and the large food chain will not pay the inspectors the appropriate amount, Deyan Nikolov also said.

In terms of inflation and price increases, the situation in Bulgaria is under control. This was stated by Nikolay Valkanov - Executive Director of the Association for Modern Trade to Bulgaria ON AIR, quoted by FOCUS.

"It is normal for there to be anger in society towards what is happening, because for the last 3 years we have witnessed very high inflation. This inflation has slowed down significantly. In Bulgaria, it is so low that for the first time in a long time, I think we are already meeting the inflation criterion for the eurozone," he added.

According to him, there have been no price differences in large retail chains over the past year, with some products even seeing a slight reduction. "That is why the call for a boycott is slightly absurd, because in this particular case, the traders with the most competitive prices on the market are being boycotted," Valkanov also told Bulgaria ON AIR.

When asked how he would comment on the information that the prices of certain food products are better for buyers in Western European countries, the specialist replied: "This is one of the many false statements that have been made in the last two weeks... Official Eurostat statistics clearly state that Bulgaria has significantly below the average prices for Europe in certain product categories, such as meat, bread and green foods - the average prices are about 73% of the EU average. Yes, there are categories in which prices are equal to or even slightly higher than the EU average - these are eggs and dairy products. But if we compare the consumer basket, it in Bulgaria is significantly cheaper than the EU average and is fully comparable with countries such as Romania and Poland, which have the lowest prices for a comparable basket of products," said Nikolay Valkanov.