A new package of measures to support business with up to BGN 2 billion will be presented by the government next week

Reduction of the VAT rate for natural gas is being discussed

Industry / Bulgaria
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Source: Bulfoto, archive

The anti-inflation package of measures will be worth between 1.5 and 2 billion levs, said Deputy Prime Minister Asen Vassilev. According to him, the package will run until the end of this year, and it will include measures that require legal changes. Its final version will be presented next week, BNR reported. However, according to MPs, options for reducing the VAT rate on fuels are currently being discussed.

Vassilev declined to comment on substantive measures until the work is completed. The final amount of the package will depend on this. When the final version is ready, it will be clear how much the measures will cost the treasury:

"About a billion and a half to two billion. These funds currently have a variety of sources from which we will take them, but as the package is finalized, the sources will be finalized," said Asen Vassilev.

Earlier today, the Minister of Innovation and Growth Daniel Lorer announced that the package of anti-inflation measures that the government is discussing envisages BGN 1.5 billion to help businesses and retirees.

As early as this morning, experts from the "We continue the change" party announced that an inflation supplement of BGN 60 is planned for pensioners. Three steps are set to control the price shock for fuels - among them the elimination of excise duty and a discount when refueling petrol and diesel up to a certain limit. "The Ministry of Finance has done an excellent job in gathering a huge set of measures and calculating their possible effect that they would have on citizens and the fiscal system. The package is worth over a billion and a half. It contains measures, such as the abolition of excise duty on natural gas used as motor fuel. This affects every citizen who drives his car on gas. This measure will cost about 5.6 million levs to the state, but will help all households that drive their car on gas. This was explained to Nova TV by the MP from "We continue the Change" Venice Angova.

As another fuel-related measure, she cited a 9% reduction in VAT on natural gas. "In this way, the government will help the citizens by providing them with a discount on fuel prices," Angova stressed. He added: "The government has shown that it cares about citizens and businesses. We are now looking for the best solution to help with inflation. "

The Ministry of Finance has the ambition to keep the main parameters of the budget even after the update in the summer, said Finance Minister Vassilev, confirming that the preparation of the foreign debt issue is already at an "advanced stage".

So far, our country has assumed new debt only from the domestic market, as at the last auction for BGN 300 million securities with a maturity of 3 and a half years, a yield of 1.33 percent was achieved - significantly higher than the previous two issues of the same securities :

"Given that issues are currently being prepared and it is no secret to banks that are both on the domestic and foreign markets, we know that the moment they start preparing an issue for the foreign market, all banks keep resources to enter the foreign market, as they can achieve higher profitability there, "Vassilev said in response to a parliamentary question about the deteriorating conditions for debt.

The external issue is at an advanced stage and will most likely be in two tranches, the Deputy Prime Minister added, but declined to comment on details about its volume:

"The risks are mainly related to the war and the shock that hit the markets in Europe. You know that for about a month and a half no one has issued in Europe. Then an issue was placed in Croatia under relatively favorable conditions."

For the budget, the new debt this year could be BGN 7.3 billion. So far, BGN 1.8 billion have been taken over from the domestic market, but compared to the end of last year, the total indebtedness has decreased by BGN 2 billion, as old debts have been repaid with the debts already taken.

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