The business is angry that the compensations for the expensive electricity did not enter the budget
Deputies accepted a part of the budget update, but by the time the issue had been edited, the voting had not ended.
From July 1, heating and gas will be taxed with 9% VAT and will be exempt from excise duty. The rate for bread and flour is zero. The lighter taxation will be until June 30, 2025. This was finally decided by the deputies with the adoption of the budget update. This means that their prices may fall because of the reduced tax.
VAT on beer and wine reverts to 20%. Cigarettes will not become more expensive for the time being, after the parliament decided not to change the excise duty on them. The Ministry of Finance proposed that the rate for the heated ones be increased from 233 to 245 BGN per kilogram, and for the classic ones – from 177 to 187 BGN. A schedule was set for nicotine liquids, starting from July with BGN 0.18 per milliliter and reaching BGN 0.21 by July 2025.
The accounts of the Ministry of Finance show that the budget loses BGN 100 million in additional revenue by the end of the year by keeping the current excise tax.
Parliament also decided to abolish the excise duty on propane-butane and methane for cars until June 30, 2025. The one for energy products used for the combined production of heat and electricity has also been dropped. Also for electricity when it is from RES.
The surprise in yesterday’s voting was a wrong deputy vote – of Antoaneta Tsoneva from DB, after which the flour also remains with zero VAT. Thus, the budget lost another BGN 8 million in VAT revenue.
The deputies also accepted a compensation of 25 cents for each liter of gasoline, diesel and propane-butane, if up to 50 liters are filled at once. The discount is effective from July 1. Ultimately, all texts from the update were not accepted until the editorial close of the issue. Their examination was interrupted due to a hearing of the Prime Minister and DANS about the 70 Russian diplomats expelled from Bulgaria.
An angry reaction on the part of the business caused the proposal rejected on Tuesday by the budget committee of the parliament to include the compensations for the expensive electricity in the budget update.
There were two proposals for the regulation of the aid – to GERB for a base price of BGN 150 per megawatt hour and 80% compensation above this threshold, and to DPS – a base price of BGN 200 and again 80% compensation. The first idea gathered the votes of GERB, DPS and “Vazrazhdane”, and the second – of GERB and DPS. However, they turned out to be insufficient, because “We continue the change”, “Democratic Bulgaria”, “There is such a people” and BSP voted with “abstention” or “against”.
In an official position of the employers’ association, it is said that with this decision 633 thousand non-domestic electricity consumers (micro, small, medium and large enterprises, hospitals and schools, kindergartens and theaters, museums and social institutions, churches and monasteries) are were deprived of compensation against unrealistically high energy prices, as of July 1. From next month, the enterprises would pay at least twice as high electricity bills, which will inevitably affect the final prices of the produced products and will generate inflation, which will hit the pocket of every Bulgarian citizen.