Duty on fuels, cigarettes, coal and electricity in Bulgaria will be increased to the minimum rates in the EU, the Cabinet decided at a meeting in Euxinograd on July 29.

Increasing these excises will stimulate contraband and illegal production of excisable goods, experts told Pari daily.

Already excise rates are high enough to provide sufficient motive to produce contraband and illegal goods, experts said.

The budget loses at least two billion leva a year from evasion of duties on imports, and a member of Parliament said that no duty was paid on 35 to 40 per cent of fuels.

Prime Minister Sergei Stanishev said that acting against contraband was a way to boost budget revenue performance.