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Tax-dodging vegetable traders get chop in Bulgaria

Published 08/10/2009, 11:14 AM
Updated 08/10/2009, 11:18 AM

SOFIA, Aug 10 (Reuters) - Bulgarian authorities launched mass checks of fruit and vegetables at border posts and markets on Monday as part of a crackdown on importers who fail to pay tax on produce brought into the country.

Finance Minister Simeon Djankov ordered tax authorities and police to check traders at the main food markets for suspected evasion of Value Added Tax, due on all imported produce, and other wrongdoings, the Finance Ministry said in a statement.

The new government of the centre-right GERB party, elected last month on promises to tame corruption and crime, said Bulgaria was losing between 2 billion and 3 billion levs ($1.5 billion and $2.2 billion) a year because of smuggling and tax fraud.

Djankov also doubled the number of officials at the Greek and Macedonian borders who will conduct round-the-clock checks of fruit and vegetable imports.

Last year, Brussels froze millions of euros in mainly agricultural European Union aid for Bulgaria because of fraud.

Years of post-communist neglect and poorly designed government policies have made farming the least-developed sector of the economy. Once an exporter of foodstuffs, the country is now a net importer.

Bulgaria is under pressure to plug a 2.5 billion lev hole in its finances to prevent its budget slipping into deficit.

Last week, the government announced spending cuts that it said would make up about 46 percent of the expected shortfall. (Reporting by Anna Mudeva; editing by Andrew Dobbie)

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