Hoteliers and restaurateurs are protesting with a demand for a 9% VAT rate to prevent bankruptcies in the sector. Their first protest action is called "9 Minutes of Darkness for 9% VAT." It involves turning off the lights and music in restaurants across the country for 9 minutes exactly at 9:00 PM.
Industry representatives highlight that the 20% VAT rate will lead to increased grey economy activities, a decline in customers, and business bankruptcies. Restaurateurs claim that over the past four years, 80% of establishments have been operating legally.
Richard Alibegov, Bulgarian Association of Restaurants: "In Bulgaria, we are the only EU member state with year-round tourism that will have a 20% VAT rate. Other countries such as Denmark, Latvia, and Estonia, where tourism is virtually nonexistent, have reduced VAT rates. All our competitors, with whom we are trying—and ultimately will fail—to compete, have had reduced rates for in the hotel and restaurant industry since 2008."
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