Headline: Bulgaria‘s 2025 Budget Stirs Turmoil: Re sentiment to drips 20% VAT for Restaurateurs
Article:
The new year brought unexpected change for Bulgaria’s restaurateurs, as the government reversed the 20% VAT reduction they had enjoyed, sending shockwaves through the industry and leaving many in limbo. The sudden reversal,|{{}} touted as a temporary measure during the COVID-19 crisis, has been a source of distress. Richard Alibeгов, Bulgaria’s self-proclaimed "favorite restaurateur," took to national television to voice his concerns in the first week of 2025.
Reeling from the Blow
The restaurateurs, reeling from the blow, traversed a rollercoaster of emotions. Initially, they threatened to hike prices if politicians reneged on their promises. Alibegov stated, "If politicians breach their pledge and re-impose the 20% VAT, we’ll increase our prices within 10 days," in an interview with Nova TV.Days later, they switched to regret: "We’ve only raised prices by 10% since 2020… Now we don’t know what to calculate first – the increased cost of produce, gas, bread, the VAT hike, or the minimum wage increase," Alibegov confessed on bTV.
A Glimmer of Hope
Optimism briefly resurfaced when Alibegov cited reassurances from GERB, "Democratic Bulgaria," "New Beginning," and BSP that they would reinstate the 9% VAT for restaurants and 0% for bread. Yet, hope was short-lived.
Budget Committee Fails
In the end, the majority for the controversial 2025 budget couldn’t be clinched, leaving VAT preferences for the catering sector in limbo, at least for now. In this political reshuffle, only DELjan Peevski stood out as a lone defender of the industry, promising to reinstate the reduced VAT rates if he seizes power.
The Elephant in the Room
Paradoxically, this drama unfolds in the name of consumers, yet they remain silent, sidelined spectators. When VAT for restaurants dropped to 9% during the COVID crisis, consumers barely noticed. Prices, instead of stagnating, surged by 80-100% at Alibegov’s "Rafi," as revealed by an analysis by "Dnevnik." Alibegov’s claim of a mere 10% price increase since 2020 rings hollow, verging on deceit.
As restaurateurs and consumers alike grapple with this reality, one thing is clear: clarity, consistency, and consumer interest must guide Bulgaria’s VAT policy.
