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Branimir Botev: Over-regulation will make some licensed alcohol producers become part of the gray economy

БНР Новини
Photo: archive

The Bulgarian authorities recently announced plans to make amendments to the Criminal Code, in order to tighten control over the manufacture of alcohol and tobacco. When the country’s National Assembly adopts the proposed amendments the illegal manufacture of excisable goods will be treated as crime. Currently, only the possession and the sale of illegally manufactured cigarettes and alcohol are regarded as crime. According to other amendments, the machinery and equipment used for the manufacture of excisable goods will be subject to registration. The decision about the proposed amendments was taken at a meeting between Bulgaria’s Minister of Finance Vladislav Goranov, the Minister of Interior Mladen Marinov, Bulgaria’s Minster of Justice Tsetska Tsacheva and the Chairman of the Parliament’s Legal Affairs Committee Danail Kirilov. According to Bulgaria’s Minister of Justice Tsetska Tsacheva, the administrative and penal systems cannot prevent the production of excisable goods, because this country does not possess information about violations until the checks are made.

Nearly 55-60 percent of the grapes used for the production of alcohol are processed in licensed factories, data of the Bulgarian Vine and Wine Chamber show. The rest of the grapes quantities are processed in home conditions in the so-called unlicensed excise storehouses, the former Chairman of the Association of Manufacturers, Importers and Retailers of Alcoholic Beverages in Bulgaria Branimir Botev told Horizont channel of the Bulgarian National Radio. Branimir Botev quoted expert data according to which a large part of the production reaches the market without going through the excise warehouses.

Branimir BotevFrom 2008 until 2017 the money paid by the manufacturers of alcoholic beverages to the state budget increased three times. In other words, we should ask ourselves whether the licensed producers have been subject to over-regulation at the expense of the producers which remain out of the control of the Bulgarian customs, Branimir Botev underlined. In his view, the over-regulation on this business may have a negative effect and make some licensed manufacturers become part of the gray economy.

The measure which aims at introducing registration regime for all machinery and equipment used in the manufacture of alcoholic beverages is illogical, Branomir Botev said and added:

How small producers of alcohol will become legal if we adopt texts that incriminate the manufacture of illegal alcohol. How can we make 350.000 Bulgarians who brew their rakia brandy at home to place excise stamps on their bottles, jars and demijohns? In Branimir Botev’s words, such decision would blow up public opinion, because the traditions will be broken. Bulgarian people hold several things dear and homemade rakia is one of them.

Branimir Botev contends that the Bulgarian Ministry of Finance should not propose measures to curb illegal manufacture of alcoholic beverages without consulting with the business first.

English version: Kostadin Atanasov




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