Temporary tax breaks on domestic fuel and basic foodstuffs as inflation continues rise
The Bulgarian government has confirmed a range of emergency VAT rate cuts and rollovers of existing temporary cuts:
- An extension of the temporary cut to 9% for domestic energy and hearting until 1 July 2023
- Bread to be cut to 0% until 1 July 2023
- Ending of the reduced VAT rate on alcohol served with food. The standard VAT rate will now apply
Inflation in May hit 15.6%, up from 14.4% in April 2022. Inflation has been rising for 15 consecutive months but started speeding up in the past several months due to surging energy prices. Food inflation has reached 22.7%.