Bread Prices in Bulgaria: Old DDS Rates Resume, Hikes Expected Soon
Bulgarian bakeries are gearing up to implement price increases following the reinstatement of the 20% DDS tax rate on bread. While some bakers have yet to adjust their prices, consumers can expect to pay more than 2 BGN for a loaf of white bread within hours.
In the city of Montana and the surrounding region, local bakers will raise bread prices starting Monday. Nova Television reports that bakeries are introducing higher prices due to the return of the DDS tax.
Local baker Serafim Vasilev explained, "We were waiting to see if the tax holiday would be extended, but since it isn’t, we’re starting to calculate the 20% and add it to the price. There’s no way it won’t have an impact."
The price of wheat flour has also increased, with Vasilev Reporting a rise to 106 BGN per ton. The DDS tax on flour is now included in its price, effective immediately.
While bread prices are set to rise, bakers are not confident that the increases will stop here. With electricity, water, and natural gas prices also rising, along with the renewed DDS tax, it’s challenging to keep bread prices stable.
Consumers express concern about the impact of these price increases on their budgets. The fear is that every increase is a hit to their financial stability.
Bread prices are also climbing in Vratsa, according to BTA. The reason is the same: the return of the 20% DDS on bread production. Two bakers from Vratsa reported a 20% price increase without additional surcharges due to higher wheat prices.
Ivelio Dimitrov, owner of a bakery that serves the region, including Sofia, commented, "We increased our bread prices by 20%, which creates some difficulties, but customers understand that it’s out of our hands."
For now, the bakery does not plan to raise prices further due to the increased cost of electricity. "We’re absorbing the cost ourselves due to competition. It’s not good, but that’s the situation," Dimitrov said.
However, not all bakeries have implemented the 20% increase, and price discrepancies may vary between producers.
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