Bulgarian Minister of Economy Bozhidar Lukarski held a meeting on Tuesday with representatives of large companies and business organisations from the food industry sector over the draft bill on a public health tax that was brought up for public discussion by the Ministry of Health.

Business representatives voiced their fears the introduction of the tax would lead to investment outflow in the sector, an increase in the share of the informal sector, axing of jobs, and bankruptcy of SMEs.

Besides that, the companies warned illegal imports of cheap and low-quality food products from neighbouring countries in which there is no such tax might increase. The companies also think VAT and social insurance contribution revenues could also drop, the press centre of the Ministry of Economy said.

Minister Bozhidar Lukarski announced his ministry was committed to assessing the impact of the draft bill on the economy before it was tabled at the Council of Ministers so that the effect of applying it could be evaluated.