Will bread become cheaper for the final consumer after the removal of VAT?

According to manufacturers, this will not happen.

Even from September or October, there will be a new increase, which may reach 3 BGN, writes Nova TV.

BSP announced that bread is now 20% cheaper.

It turns out that the measure has only come into force in places so far.

Against this background, they started the harvest in Dobrudja, but the expectations for a strong harvest there did not come true. 

Transporters: Bread may become more expensive due to new tolls

At the moment, with 20 percent cheaper bread, we can only buy it from the big retail chains.

In some places it is still the old price and varies between BGN 2.20 and BGN 2.60 per piece of bread.

The reason - the large grocery stores preemptively introduced the reduced price, even before the zero VAT rate for bread was promulgated in the State Gazette.

Ninova showed a promotion in a supermarket and boasted: From today, bread is 20% cheaper in the chains

And in small shops - the prices are still unchanged.

"Unfortunately, there is no change in the price of bread, and we don't see how this change will come with these prices of fuel, electricity, grain, of the low yield", commented Kamen Avramov - owner of a store in Montana.

It is only a matter of days before the lower prices are felt in the small shops, commented the BSP.

"There's no way they won't get cheaper, when the 20 percent VAT for both the bread producer and the flour is 0, there's no logic for the price not to get cheaper," said Georgi Svilenski.

With the entry into force of the zero VAT rate on bread, the price may remain the same, producers countered.

"We are removing the VAT, but the price, if we reduce it as well, and all other expenses are raised - such as gas, electricity, there is no effect.

It will not have an impact on the final price of the product", believes Iliyana Vasileva - bread grower in Lom.

And others are even more extreme in their forecasts and expect bread to even rise in price.

"There should be at least another 50-60 cents per loaf of bread, which goes up to 3 BGN", believes Dimitar Bakalov, a bread maker in Blagoevgrad.

Today in Dobrich they started the harvest.

Expectations for a strong harvest are not justified.

"Unfortunately, it suffered a lot of upheavals, and the autumn drought and the frosts that were in April and May reduced the yield at first.

We have an expensive campaign and we hope to cover the costs", said Radostina Zhekova, Dobrudja Union of Grain Producers.

They discovered the harvest in Dobrichko

The State Commission for Commodity Exchanges and Auctions reassures that at the moment flour prices are stable, which implies a hold in the price of bread.

"In practice, we will have a calming of the market.

There are no indications of stressful movements regarding grain and flour", stated Vladimir Ivanov.

And the Commission for Consumer Protection announced that they are starting checks on bread prices throughout the country.

It is expected that the decision on the zero rate of VAT on bread will be published in the "State Gazette" tomorrow.

It will enter into force from Friday, but with a retroactive date - July 1.