Bulgarian Hospitality Association Chair: 20% DDS Hike for Restaurateurs Temporary; Expect Stalled Rate to Resume by 2025
Richard Aliyev, chair of the Bulgarian Association of Establishments, shed light on the recent 20% DDS hike for restaurateurs, stating that the move was temporary. When asked about the reversal of the 9% DDS rate, which had been in place since early 2020 due to the COVID-19 pandemic, Aliyev acknowledged theministerial lack of time to review the budget.
Aliyev noted that the association had met with political leaders, including GERB-SDS and DPS – Novo Nasheствие, Vazrazhdane, and BSP, who had previously supported the lower DDS rate. He confirmed that these parties had assured the association that the 9% DDS rate would be extended for establishments, bread-making enterprises, and sports services until the end of 2025, pending decisions on budget extensions or new budgets.
The chairman also pointed out that the 9% DDS rate had been in effect in 24 European countries since 2008 and that the association had long-sought this rate due to its positive impact on the hospitality sector.
Aliyev further announced that despite the last few years’ reports to parliamentarians and the Ministry of Finance, there were no budget losses. Instead, the association expected 2024 to bring in 200 million more BGN in overall taxes compared to 2019.
In response to concerns about rising prices in Bulgarian venues, Aliyev admonished businesses not to increase prices due to the DDS hike, as the 9% rate was set to return soon.
