Bulgaria’s parliament on Wednesday approved government plans to cut value added tax (VAT) on food provided by restaurants and catering services to 9% from 20% from July to help an industry hit hard by the coronavirus crisis, Trend reports with reference to Reuters.
The cut would run through 2021 as a temporary measure to help the sector recover. It would not affect alcoholic drinks bought in restaurants and provided by caterers, which will still attract a 20% VAT rate.
The country sees its economy shrinking by 3% in 2020, while the European Commission expects it to contract by 7.2% this year.
VAT, set at 20% for all goods and services except hotels, is the main revenue source for the country, which keeps income and corporate taxes at 10% - among the lowest in the European Union.
The deputies also voted to cut VAT on books, some baby foods, and diapers to 9% from July until the end of next year.