Sunday 17 January 2010

Commericial Rakia Sales Are Down Due To Homemade Rakia

Commericial Rakia Sales Are Down Due To Homemade Rakia
This was a recent report after last autumn's grape harvest had been gathered and assessed. what is basically says is that more rakia is being made at home in the thousands of villages up and down the country and because of this the duty should not be raised as firstly it wouldn't be paid and collected and secondly that it would increase an underground market and further damage the commercial sales of rakia. It was also noted that Botev makes a passing remark that home made rakia is inferior to the commercial brands. I thing this passing statement was of course of political design.

The shrinking of the rakia (Bulgarian type of brandy) market was an expected process, said Branimir Botev, chairperson of the Association of Producers, Importers and Traders of Spirit Drinks (APITSD).

In his words, the association has foreseen the shrinking of the rakia market as only a small part of the grapes has been sold out.

“Some great part of around 80% went into the distillers in the villages. It is natural that at the moment there is some over-production of home-made rakia, which is out of control and no excise duty is paid on it, as it is outside the authorities of the customs”, Botev remarked.

He added that because of this tendency, the association has required the excise duty on rakia not to be hikes, “as this will put legal producers in even more unfavorable situation, bearing in mind they are now under some stepped up control and pour their excise and VAT in the state budget”.

On the other hand, this will open the scissors between black market, where some cheap substitute is sold at BGN 1.50 – 2/liter of broach rakia, and the legal industrial producers.

Source: www.focus-fen.net

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