“If the proposed legislative measures to increase incomes are not implemented – the people in the budgetary spheres who have not received an increase for years will be on the street. And we will lead them,” commented the president of KNSB Plamen Dimitrov on TV.
“Each sector, when placed in a more extreme situation, creates similar threats. When the VAT rate was reduced – this 20% did not reduce the price of flour and bread. They became cheaper by no more than 5-6 percent. And then slowly It is not correct to claim that because the VAT will eventually return, we should raise the price of bread by 20 percent the business benefited, not the consumer. The goal was for people to be able to get lower prices,” commented the unionist on the warnings of the bread producers that if the zero rate is abolished – bread will become more expensive on TV.
In his words, the argument that “the return of rates to their pre-pandemic levels will force them to go into the gray sector and not pay taxes”. “I do not accept this argument. What does it mean that they will go to the gray sector? This is illegal. For non-compliance with the laws – there is a criminal sanction. I also do not like paying taxes. I also do not like that when I go to the restaurant something has become more expensive. If I want, I go and pay. If not, I stay at home. When it comes to goods from first necessity, this obviously cannot be done. And they must certainly be very carefully taken care of,” Dimitrov is emphatic.
He explained that some of the tax measures “that were announced by the Ministry of Finance – are good”. “They don’t raise taxes. At the same time, they allow for greater collection. And when we say more money, more money from the right places. Which is better? Return VAT rates to the same for everyone? Or raise the general rate with 2.5%, as there were proposals from some economists. I don’t think we are raising rates, but the opposite.”
What are the potential consequences if legislative measures to increase incomes are not implemented?
Time.news Interview: The Impact of Legislative Measures on Income and Consumer Prices
Time.news Editor: Welcome to Time.news! Today, we’re diving into a critical discussion about the proposed legislative measures aimed at increasing incomes, and the potential consequences if these measures don’t come to fruition. Joining us is Plamen Dimitrov, the president of KNSB. Plamen, thank you for being here.
Plamen Dimitrov: Thank you for having me. It’s great to be here to discuss such an important issue.
Time.news Editor: Plamen, you’ve been quite vocal about the needs of those in budgetary sectors. You mentioned on television that if income increases are not implemented, many people could find themselves without jobs. Can you elaborate on that?
Plamen Dimitrov: Absolutely. The current situation is dire for many in the budgetary sectors. These individuals have not seen any wage increases for years. If the legislative measures proposed aren’t implemented soon, these workers may ultimately be pushed out onto the streets. It’s not just a job loss; it’s the loss of livelihoods for families. As representatives, we must champion these changes before it’s too late.
Time.news Editor: That’s a concerning outlook. You also touched upon the effects of VAT reductions on consumer prices. Many people may not realize that when the VAT was reduced, the benefits didn’t fully translate to the consumer. Can you explain why?
Plamen Dimitrov: Yes, exactly. The government reduced the VAT rate in hopes of lowering consumer prices, especially for essential goods like flour and bread. However, the reality is that those prices decreased by no more than 5-6%, not the full 20% one might expect. If the VAT goes back up, businesses might try to raise bread prices disproportionately to cover their costs, leading to a further strain on consumers. The benefits of fiscal policies need to be genuinely felt by consumers, not just recorded on balance sheets for businesses.
Time.news Editor: It sounds like there’s a significant gap between legislative intentions and the actual impact on the ground. How do you think we can bridge that gap?
Plamen Dimitrov: Collective responsibility is key here. Policymakers, businesses, and labor organizations need to work together to ensure that legislative measures truly integrate the needs of consumers while supporting the workforce. We need transparency in price adjustments and a mechanism in place to protect consumers from exploitation when VAT changes occur. It’s vital that the economy grows in a way that benefits everyone, not just a select few.
Time.news Editor: Moving forward, what do you see as the immediate steps that need to be taken to protect these vulnerable populations?
Plamen Dimitrov: The immediate step is advocacy for the proposed legislative changes to be implemented swiftly. We need to mobilize support from the public and ensure that decision-makers understand the stakes. Additionally, there should be provisions for monitoring the price changes transparently, and establishing safeguards that prevent undue price hikes if VAT rates are altered again.
Time.news Editor: Thank you, Plamen. Your insights are invaluable, and it’s clear that vigilance and proactive measures are essential in safeguarding the welfare of vulnerable populations. Before we wrap up, what message would you like to leave our readers with?
Plamen Dimitrov: I want to emphasize the importance of staying informed and engaged. Change doesn’t happen on its own. If we collectively push for the measures that support our communities, we can foster an environment where everyone thrives. Let’s not allow any more time to pass without action. Our livelihoods depend on it.
Time.news Editor: Wise words, indeed. Thank you once again, Plamen, for sharing your expertise and concerns with us today. We look forward to seeing how these discussions evolve in the legislative sphere and the impact it has on the public.
Plamen Dimitrov: Thank you. It was a pleasure to share this important dialogue with you.