Bulgaria Ruling GERB Ministers Clash over Alcohol Tax Hike

Bulgaria’s Agriculture Minister, Miroslav Naydenov, is against the alcohol tax hike. Photo by BGNES

Bulgaria’s Agriculture Minister, Miroslav Naydenov, insists on a broader discussion regarding the 2010 increase of the alcohol tax.

Naydenov said Friday that there is a need of both a public debate and a plenary hall one. The Minister expressed his opinion that the increased excise on alcohol would have a negative effect on Bulgaria’s farmers and alcohol industry over the abundant grape harvest this fall. Naydenov is adamant that the tax hike would not lead to more revenues for the budget.

On Thursday, the Parliamentary Budget Committee changed and increased on second read the alcohol and cigarettes’ excise duties from their values approved on first read. The hard liquor tax, according to the latest stakes, would increase by BGN 0,72 per liter. The increase also includes the traditional homemade grape and fruit brandy - “rakia” where just the first 30 liters would be free of taxation. Only beer tax remains unchanged.

Contrary to his colleague at the Agriculture Ministry, Bulgaria’s Finance Minister, Simeon Djankov, gave high marks to the decision saying the increased alcohol tax would bring an additional BNG 60 M to the 2010 budget.

When asked why the MPs disproved earlier promises of Prime Minister, Boyko Borisov, that the hard liquor excise would not go up, Djankov replied that making laws and thinking about what is best for the State is the MPs job.

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