The Bulgarian authorities are planning to spice up manufacturing of native fruits and vegetable by introducing a new simplified VAT system, native media have quoted the Deputy Minister of Agriculture, Chavdar Marinov, as saying.
Bulgaria has a flat VAT charge of 20%, and for a lot of, it’s thought of the “sacred cow” for the nation’s financial system and price range revenues. However, the nation struggles to combat the competitors of neighboring nations, which supply vegetables and fruit at costs decrease than the native merchandise.
Marinov informed Nova TV that the concept is to exempt the producers from VAT, which might be paid solely by the retailers.
Novinite.com reported that an identical scheme is already being utilized efficiently in Bulgaria for grain producers. Marinov added that processing corporations might even profit from the brand new scheme and won’t pay VAT for the uncooked materials.
Marinov defined that Bulgarian vegetable producers discover themselves in a tough place as they can’t compete with the costs of vegetables and fruit exported by neighboring international locations comparable to Greece.
It’s common to see Greek fruit and veggies being cheaper than the Bulgarian produce, which irritates Bulgarian shoppers. In Bulgarian supermarkets, the origin of vegetables and fruit is normally indicated, and it’s straightforward to see that imported merchandise are cheaper.
For Marinov, this could primarily be attributed to the fragmented cooperatives sector in his nation in comparison with the broader neighborhood, but in addition to the too many “middlemen” within the meals chain, which will increase the last word price of the merchandise.
Contacted by EURACTIV, a European Commission spokesperson declined to touch upon the difficulty, contemplating that Sofia’s initiative remains to be a draft regulation.
The Romanian authorities additionally tried in January to assist the native fruit and vegetable sector by creating the so-referred to as “Agribusiness House Unirea,” a state-owned firm aiming to create a nationwide community of greater than 60 fruit and vegetable retailers.
The objective was to extend the consumption of native merchandise and facilitate their distribution all through the nation in opposition to competitors from international chains. The corporate focus on smallholders and will get public funding.