The Finance Ministry is considering a cut in value added tax (VAT) to 18 per cent in 2007. This was said yesterday by Deputy Finance Minister Stamen Tassev at a meeting with AmCham, the American Chamber of Commerce in Bulgaria. The proposal is a part of the Government’s policy on tax cuts. Currently, the VAT rate is 20 per cent. Similar tax cuts have been promised by the other political parties in their election programmes. The socialists want lower and differentiated VAT rates for medicines, bread and milk. The Union of Democratic Forces and Democrats for a Strong Bulgaria have said that they are also planning a VAT rate of 18 per cent.
US business people said during the meeting yesterday that the abolition of double taxation between the US and Bulgaria would improve bilateral trade relations. Preparation for such an agreement will start in Washington today. This was said after a meeting between Finance Minister Milen Velchev and US deputy treasury secretary Randal Quarrel. Velchev was in Washington for the spring session of the International Monetary Fund and the World Bank. (Standart News)