Bulgarian Socialists Say Govt Protects Interests of Big Business

Socialist MP Anton Kutev has accused the government of defending the interests of big business. Photo by BGNES

Socialist MP Anton Kutev has accused the government of upholding the interests of big business.

In a Friday statement in Parliament, he said that small filling stations would fail to meet the requirement for the installation of level gauges, which would leave many areas in the country without refueling sties.

The MP from the Bulgarian Socialist Party (BSP) pointed out that the cost of the installation of the mandatory measuring equipment was BGN 8000, which was more than the annual profit of a small fuel retail outlet.

Kutev emphasized that such retail stations would have to work over a year to be able to afford the devices and reminded that the traders had been forced last year to buy specific cash registers which cost BGN 6000.

Traicho Traikov, Minister of Economy, Energy and Tourism, responded by saying that the measures did not target small business in particular but were aimed at introducing universal conditions for all traders.

He further noted that competent authorities on the matter were the Finance Ministry and the National Revenue Agency (NRA), not the Ministry of Economy, Energy and Tourism.

Citing NRA data, Traikov announced that the introduction of the mandatory electronic connection of filling stations' cash registers to the database of the revenue authority had resulted in a 10% increase in reported turnovers, therefore a 10% reduction in tax evasion and grey transactions.

The deadline for fitting filling stations' reservoirs with level gauges connected to the NRA is end-March 2011.

Despite the calls of small-scale fuel traders for a postponement, Finance Minister Simeon Djankov and Prime Minister Boyko Borisov have ruled out such an option.

When asked about the specifics of the price-setting mechanism applied in Bulgaria and why the domestic retail fuel prices did not match the rates on international markets, Traikov cited EU prices in comparison.

He said that Bulgaria was fourth in the EU in terms of low retail prices of gasoline and tenth as regards low-cost diesel.

He once again reminded that the Economy Ministry was not in charge of regulating prices on the fuel market.

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