"If the state wants European prices, it should first ensure European predictability and a fair tax policy" — this is what the Bulgarian Association of Establishments (BAE) and the Bulgarian Association of Restaurants (BAR) state in their official position. Through it, the organizations are responding to the words of Deputy Prime Minister Atanas Pekanov, who publicly spoke out against reducing the VAT for the tourism industry yesterday.

According to the industry associations, Pekanov's statement, in which he draws a parallel between prices in Sofia and Vienna, represents "convenient political rhetoric" rather than a genuine economic analysis. The BAE and BAR emphasize that such a comparison must necessarily take into account purchasing power, the tax burden, the administrative environment, rents, energy, and labor costs. Restaurateurs point out that in countries like Austria, the restaurant and food industry benefit from reduced rates for certain supplies, while in Bulgaria, the entire industry continues to bear the full tax burden.

The Deputy Prime Minister's criticism was prompted by his observations of July and August, during which the service sector recorded its second-highest price growth. Pekanov expressed the position that merchants in our country have unjustifiably increased their prices, taking advantage of the preparations for the Eurozone, which harms Bulgarian citizens. In the media, he stated: "It is not normal for restaurants in Italy, Austria, and Spain to have prices that are partially the same as in Bulgaria," adding that it is unacceptable to him that prices in restaurants in Sofia and Vienna are relatively the same.

In response to these claims, the associations are calling for a new debate on the topic, issuing the following appeals:

  • Reduction of VAT for the sector.
  • Conducting an "honest conversation about VAT, costs, and the conditions under which establishments operate."