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In a significant decision, Members of Parliament have passed a bill extending the reduced VAT rate of 9% for restaurants until December 31, 2024. The amendment, discussed at its second reading, received 184 affirmative votes, with 7 against and two abstentions. Irena Dimova from GERB-UDF proposed these alterations to the Value Added Tax Act.
Support for the extension came from several parties, including GERB-SDS, WCC-DB, Vazrazhdane, Movement for Rights and Freedoms, BSP for Bulgaria, and a member from TISP. Opposition stemmed from one WCC-DB member and six from TISP, with one each from GERB-SDS and WCC-DB abstaining.
The initial reduction of VAT for eateries was introduced during the COVID-19 pandemic to alleviate the economic strain they faced.
Additionally, MPs prolonged the 9% VAT rate for general tourist services and gyms until June 30, 2024.
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