Bulgaria's "Vazrazhdane" party has submitted a bill to the 52nd National Assembly proposing a zero VAT rate on food and drink items included in the National Statistical Institute's "small consumer basket" as of 1 January 2026, down from the current standard rate of 20%.

The bill, registered as No. 52-654-01-42 and submitted by MPs Dimo Georgiev Drenchev and Petar Nikolaev Petrov, would add a new Article 36b to the VAT Act designating supplies of those food and drink items as zero-rated taxable deliveries.

In the bill's statement of motives, the sponsors argue that price rises linked to euro adoption, geopolitical factors including the conflict involving Israel, the US, and Iran, and Bulgaria's status as the EU member state with the highest Gini coefficient — roughly 40% — and the largest share of people at risk of poverty at 29%, together justify urgent action. The sponsors note that for the lowest-income households, food spending reaches up to 40% of income.

The preliminary impact assessment attached to the bill states that the revenue shortfall from removing VAT on the covered foods would be fully offset by higher VAT receipts from fuel, noting that fuel VAT collection in March alone grew 23.9% year-on-year. The sponsors further state the measure would impose no additional administrative burden on businesses or the tax authority.

Under the bill's transitional provisions, the Ministry of Finance and the Ministry of Agriculture and Food would have two months from the law's promulgation to issue implementing regulations specifying the exact list of exempt products. The law is intended to enter into force on the same date as the 2026 state budget.