Bulgaria border shops to get rent reprieve

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A new bill should encourage operators to modernise their facilities in return for the suspension of rental payments to the Bulgarian government, Bulgarian Duty-Free Association chairman Radostin Genov tells TRW

Bulgarian border shop operators will have state rent payments lifted over the next 10 years in return for investment in store renovations under the latest proposals for the planned duty-free trade bill. The move, discussed by the Bulgaria Duty-Free Association and the Finance Ministry last month, also demands operators to pay a 4% sales tax instead of the 19.5% profit tax and 2% turnover fee that they pay presently

Bulgarian Duty-Free Association chairman Radostin Genov told TRW that the changes were introduced to encourage tenants to upgrade the state-owned facilities. ?Instead of paying the state rent we will be given the right to renovate the shops to bring them up to the standard EU conditions as they are the entry point to the country,? he said. ?We foresee a minimum of between Eu100,000 and Eu140,000 being spent on every store to renew local infrastructure and update passengers services.? Operators are also prepared to install surveillance cameras at the stores and be connected online with the Customs Agency providing the state covers the costs.

Genov said the ministry had not confirmed whether it would back the reopening of military shops, but he thought it would not be opposed to the idea. ?We have received written support in this direction from the US ambassador and South Korea ambassador and feel backing from these heavyweights will be a good weapon for us.?

The Association has proposed that duty-free operators are given the right to sell duty-free goods to some multinational forces, such as NATO staff and forces in transit through Bulgaria to Iraq, Turkey and Greece.

A draft of the bill is likely to be produced by the end of September with discussions in Parliament set for November.