Peevski, Karadayi and Tsonev propose 9% VAT on goods for children below the age of threeEuropost , Sofia
Reducing the Value-Added Tax (VAT) to 9% on baby foods and pharmaceutical products, including on disposable diapers, for children below the age of three propose MP of the Movement for Rights and Freedoms (MRF) and publisher of Telegraph Media Delyan Peevski along with his colleagues MRF Chairman Mustafa Karadayi and MRF deputy floor leader Yordan Tsonev. They have proposed amendments to the Value-Added Tax Act.
It should be reminded that already last year MP Delyan Peevski made such a proposal.
The lawmakers rationalised their decision with the fact that the emergency measures due to the coronavirus pandemic have a very hard economic impact on the entire society. With a view to surging unemployment and the rising number of Bulgarian households facing increasingly serious financial difficulties, this draft bill is aimed at supporting families with small children.
They believe that the VAT rate reduction will lead to considerably lower prices of goods meant for children below the age of three, making these goods more available for all families.
“It is our duty towards the society to ensure that children have adequate conditions for growth and development regardless of the current situation. We believe that this measure is a powerful instrument for increasing the birth rate and supporting the demographic policy,” the movers of the draft bill reason further.
The three parliamentarians also tabled a preliminary impact evaluation, noting that the target group are a huge number of the Bulgarian families. They underscored that the act does not involve additional financial means and no significant administrative changes will result from its adoption. It will not create an additional administrative burden. Neither will it result in new charges or other financial burdens for the citizens.
“According to preliminary calculations, as a result of the adoption of this legislative initiative, there will be a decrease in budget revenues amounting to about BGN 40m,” the movers write.