Value-added tax

The interconnection of cash registers with card terminals (POS) may have been delayed and not be expected until the first months of 2024, but this does not mean that the tax administration is sitting idly by. Extensive cross-checking is under way, as well as spot checks at businesses to verify that the data generated by the POS are identical to the receipts issued by the cash registers.

The Special Consumption Tax (SCT) on natural gas for household use and petrol has been hiked, according to a decree published in the Official Gazette.

The SCT on petrol was increased by 5 Turkish Liras ($0.19), but including the value-added tax (VAT), the pump price will be some 6 liras higher, while the cost of filling up a 50-liter tank will rise to 1,702 liras.

The Finance Ministry and the tax administration (AADE) are planning on "locking" pre-filled value-added tax declarations as well as the E3 tax form, at least regarding the declared income of businesses and professionals, in an attempt to contain tax evasion.

Tax evasion may be ranging between 8 and 10 billion euros per year, according to rough calculations, and half of that could be recovered, Deputy Minister of National Economy and Finance Haris Theocharis told Skai Radio on Thursday.

The government does not plan to introduce new taxes, Vice President Cevdet Yılmaz has said, adding that the additional budget does not foresee new taxes to meet the financing need of the projected expenditures.

Many consumers are putting spending on hold this summer amid hikes in the value-added tax (VAT), buying only essential goods, daily Milliyet has reported.

Normally consumer spending increases in summer months as people buy new appliances and furniture. Weddings also give a boost to sales.

The value-added tax (VAT) on good and services have been hiked from 18 percent to 20 percent, according to a decree published in the Official Gazette.

Also, the bank insurance and transaction tax (BSMV) collected on consumer loans was increased from 10 percent to 15 percent.

Preliminary forecasts show that water pollution is not expected on the Bulgarian Black Sea coast in the next 10 days. This is what the Minister of Tourism Zaritsa Dinkova said on the National Television. The monitoring continues.

Finance Minister Asen Vassilev presented the parameters of the 2023 Budget. It is calculated based on average annual inflation of 8.7% and economic growth of 1.8%.

The deficit will be 3 percent, with capital spending severely cut from the cabinet's draft budget. The funds for the increase in pensions by 12% from July 1 have been secured, said Minister Vassilev.

Dealing with tax evasion has entered the vocabulary of the government's economic policy, at least at the level of statements of intent, after the related discussions during the pre-election period. New Minister of National Economy and Finance Kostis Hatzidakis highlighted it on Tuesday, during the ministry's handover ceremony, saying it is a form of social injustice that must be addressed.