Bulgarian bakers urge zero VAT to combat rising bread costs

The National Union of Bakers and Confectioners in Bulgaria is warning that bread is becoming unaffordable for many citizens due to extreme economic pressure. Mariana Kukusheva, chair of the union, stated that production costs are changing daily, driven by rising prices for transport, electricity, labor, logistics, and wheat on global markets.

Rising fuel costs are compounding the crisis, with recent increases in gasoline and diesel prices adding 5 euro cents per liter. The industry reports that energy and transport costs have seen significant increases, and some producers are already unable to sell products below cost, leading to fears of business closures and increased reliance on imports.

The union has proposed three potential government responses: maintaining a free competitive market, implementing administrative price regulations with clear compensation mechanisms, or returning to a zero VAT rate on bread. The latter is viewed by the industry as a key mechanism that helped stabilize prices for the past five years.