BULGARIA CONSIDERS TO INTRODUCE ‘JUNK-FOOD’ TAX

Bulgaria’s government unveiled plans to introduce tax on junk foods in order to limit the consumption of such foods and to encourage healthy eating habits.

Two Bulgarian ministers, the Minister of Health and the Minister of Sports presented their arguments in support of the new tax, which will be officially called “public health tax”.

Public health tax will be introduced following the Hungarian model, which according to analyses of the World Health Organization is proven it works effectively. The tax is indirect and essential foods such as bread, milk, cheese, butter and meat will not be levied.

Accordinmg to preliminary analysis, the new tax is expected to generate revenues of about 150 million BGN (€77 million) per year for the state budget. The proceeds from the tax will be under the control of a public council. 60% of the resulting proceeds will be earmarked for a programme for prevention and treatment of chronic non-communicable diseases. 20% will be used for changing eating habits and encouraging healthy diet, and 20% are intended to finance refirbishment of gyms and sports facilities at schools.

The government is considering to introduce the new tax in a year’s time. It will affect foods and drinks with high content of salt, sugar and harmful fats.

The highest increase of 80% is expected to be for the imitations of dairy products.