The law on the introduction of the euro is provoking strong reactions from the business community, despite the amendments made between the two readings. According to attorney Valentin Savov, the new provisions grant excessive powers to institutions such as the Commission for Consumer Protection (KZP) and the National Revenue Agency (NAP), without clear criteria for “objective economic factors.” This creates a risk of subjective interpretations and discretionary oversight. The law requires merchants to be able to justify any price increase with documentation, which is particularly difficult in sectors with informal practices such as construction, agriculture, and the food industry.
Companies are forced to maintain extensive documentation, but when suppliers do not issue invoices, bona fide merchants find themselves in a vulnerable position. The question was also raised as to whether price controls affect the real estate market—according to Savov, the law does not explicitly exclude real estate, but enforcing it in that sector is difficult.
Fines for legal entities can reach up to 1 million leva for repeat violations, but such strictness often does not affect the actual violators. According to Attorney Savov, those who break the law will not be deterred by the sanctions, while “legitimate” businesses bear the brunt. Early versions of the law contained provisions that conflicted with free enterprise. Merchants should maintain proper documentation and, in case of doubt, seek timely legal assistance.
Watch the interview here: https://www.bloombergtv.bg/a/16-biznes-start/148230-siviyat-sektor-v-balgariya-shte-zatrudni-targovtsite-da-obosnovat-rasta-na-tsenite
