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Parliament Extends 0% VAT for Bread and Flour until Year’s End

Parliament Tuesday extended the 0% VAT for bread and flour until December 31, 2024. That change in the VAT Act was enacted through amendments in the transitional and final provisions of the Gambling Act. The zero VAT for bread and flour was due to expire on June 30 this year.
The legislature also capped the markup on bread prices at 15%. The cap will be valid until December 31, 2024. On a motion by MP Desislava Taneva (GERB-UDF), it will only apply to the most popular “white bread”, “Dobrudja bread” and “Tipov” brown bread.  
The revisions in the VAT Act were proposed by the Budget and Finance Committee leader, Yordan Tsonev (Movement for Rights and Freedoms).
The cap on the bread markup will come into force on July 1, 2024. Tsonev explained that they have asked the Ministries of Economy and of Finance to assess the impact of the measure and if it is found to be ineffective and failing to lower bread prices, the next Parliament will change it.