Bulgaria Finance Minister Rejects VAT Differentiation Proposals

Finance | August 14, 2012, Tuesday // 16:16|  views

Finance Minister Simeon Djankov has assured that Bulgaria will not introduce differentiated VAT rates, saying that the step would facilitate tax evasion. Photo by Sofia Photo Agency

Finance Minister Simeon Djankov has vowed that Bulgaria will not introduce differentiated VAT rates, despite the fact that the proposal is floated every year before the budget procedure.

Djankov, as cited by Darik radio, explained Tuesday that the government's tax policy would not be changed.

He informed that the only change that would take place would affect the excise duty on diesel.

Djankov specified that the adjustment would be minimal and would be introduced due to commitments taken by the previous government.

"The matter involves, if I remember correctly, less than BGN 0.01, so it will not make a big difference about the government's plans about the tax policy under Budget 2013. My response to the question is "non". No, we do not intend to make any changes whatsoever, including in the direction of VAT differentiation. The Ministry of Finance will not back any proposals for differentiated VAT rates in any sector," Djankov stated.

He pointed out that the countries currently undergoing financial collapse had differentiated VAT rates.

"Naturally, they also have other problems, but VAT differentiation, especially amid low tax rates, like in Bulgaria, immediately facilitates tax evasion substantially," Bulgaria's Finance Minister explained.

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Tags: Finance Minister Simeon Djankov, Finance Ministry, tax evasion, VAT fraud, VAT, excise duty, diesel, Bulgarian government


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