Representatives of the hotel and restaurant sector in Bulgaria are calling for a reduced VAT rate of 9%, arguing that rising fuel prices are putting serious pressure on their businesses. According to industry organizations, such a measure is necessary to avoid closures and stabilize the sector during a period of growing costs.
They warn that expenses for raw materials, utilities and overall operations have increased significantly, forcing businesses to adjust their pricing. As a result, higher costs are already being passed on to customers, a trend that could intensify if no tax relief is introduced.
Industry representatives insist that a differentiated VAT rate would help limit further price hikes and support demand, particularly at a time when consumption risks slowing down. They argue that without intervention, the sector could face declining competitiveness and financial strain, with some businesses at risk of bankruptcy.
The proposal for a 9% VAT is also seen as a way to stimulate activity in tourism and hospitality, sectors that have already faced multiple economic shocks in recent years. Business owners believe that lower taxation would ease pressure on both companies and consumers, helping maintain stability in the market.
At the same time, the government has indicated that companies may benefit from electricity compensation mechanisms if the average monthly price exceeds 122 euros per megawatt-hour, offering some relief amid the broader increase in energy costs. (Novinite)