Bulgaria mulling "fat tax" on foods

The Bulgarian parliament is scheduled to discuss the details of a new proposed "junk food" tax next month, despite vigorous opposition from the country’s food and drink sector.

The country’s health ministry has been pushing the idea to combat obesity and unhealthy lifestyles. Regulators are proposing the amount of the tax will vary between 3% and 10%. Petar Moskov, Bulgaria’s health minister, has said this would be levied on products with high content of trans-fatty acids, salt, fat, sugar and caffeine.

Bulgarian food and drinks businesses are opposing the plan, warning of sales losses in legitimate sales, while black market sales may rise.
Stojko Kirovsky, an owner of Jam & Jam Ltd, one of Bulgaria’s largest producers of confectionery products and food ingredients, said: "The introduction of the tax will result in the growth of an illegal segment of the market. This will be associated with serious problems that will be observed through the entire chain – from agricultural production through processing enterprises, as well as retail and end customers. Prices, of course, will also grow."

Joan Velichkova, presiden, of the Bulgarian Soft Drinks Association (BSDA), told just-food: "The introduction of a tax for junk food will lead to mass bankruptcies in the food industry and financial problems of the majority of producers. There is a need to use a balanced approach, with the aim to protect the interests of both consumers and businesses…" She also said the government should take heed of the experience of other European countries regarding such taxes – a levy introduced by Denmark was scrapped in 2012 following a range of operational complications.