Bulgarian bill threatens duty-free airport operations

Tina Milton

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State-owned airports in Bulgaria may have to change the way they operate duty-free stores as part of new regulations introduced under the new duty-free trade bill

State-owned airports in Bulgaria could be forced to change the way they operate duty-free stores as part of regulations introduced under the new duty-free bill.

The bill, which is being debated by in parliament after it was passed by the Cabinet last month, indicates duty-free operators must have a minimum required personal capital of 2m leva ($1.3m) before they are licensed to trade. However, reports indicated that Sofia Airport has 500,000 ($322,000) leva capital, while the Black Sea airports of Bourgas and Varna have 250,000 ($161,000) leva each.

Bulgarian Duty Free Association president Radostin Genov told DFNI: "I would not be surprised if the bill requirement for 2m levas is just a hidden reason to change the operating rights of shops located at the airports."

There are six duty-free shops at state-owned airports - four shops at Sofia, an outlet at Varna and a store at Bourgas. In 2005 the state-owned airports reported a turnover of €18m ($22m).The bill is expected be introduced by the end of July.

For more details see DFNI July 15.