04.04.2014

"Preliminary end of March data show increased excise revenues by around BGN 50 million compared to last year", Deputy Minister of Finance Lyudmila Petkova stated in an interview for Telegraph daily. She added that in respect of NRA revenues an increase of around BGN 55 million was also observed. The delay in revenue collection in February Petkova explained with the need for legislative changes resulting from the Constitutional Court decision about the single account. "Part of the companies rescheduled the payments due in February to March and that is the only negative effective of abolishing the single account", she stated.

The effect of the introduction of the reverse VAT charge mechanism is that for the first two months of the year the declared for refund VAT is by BGN 25 million less per month, Deputy Minister Petkova announced. The introduction of the fiscal control measure also shows results - for the 1^st quarter the new unit has made 18,500 inspections of 280,000 t risk goods in total imported across the internal borders with Romania and Greece. "In the period January-March the volume of imports has risen by 3 million kg of fruit, vegetables and meat compared to the same period in 2013 and according to us this is not a signal for increased consumption, but rather quantities coming now to light and not declared in the past", Lyudmila Petkova noted. She further stated that there was feedback from sector organisations according to which an improvement of the competition environment was already felt. "And this is the second function of this mechanism - not only to improve collection, but also to protect Bulgarian producers", she emphasized. The Deputy Minister highly appreciates the work of the fiscal control unit. "Fiscal Control Directorate reports directly to the NRA Executive Director. Its personnel number is 300 people and there are still vacancies and competitive selection going on to fill the vacancies. The mechanism proves that preventive control is much more effective than the ex-post one", Petkova is positive.

"According to the European Commission the tax system in Bulgaria is quite balanced - low rates of direct taxes and higher ones of indirect taxes with broad tax base and few preferences", Lyudmila Petkova explained and specified that no changes in the tax rates were discussed. The only certain increase is for excise duties on tobacco products to be consistent with the European Directive. According to her our excise rate should reach EUR 90 per thousand cigarette pieces by 2018, while at the moment it is EUR 75 per thousand cigarette pieces. "Our intention is to have a gradual increase in equal parts which is to begin next year", Deputy Minister of Finance Lyudmila Petkova announced.