The Bulgarian government and representatives of the restaurant industry have clashed over food and service prices, wages and calls for the return of a preferential VAT rate for restaurants.

The dispute followed criticism from Deputy Prime Minister Atanas Pekanov, who questioned why prices at Bulgarian restaurants can be comparable to those in major European cities such as Vienna and Rome.

Veselin Nalbantov, deputy chairman of the Bulgarian Hotel and Restaurant Association, rejected the criticism, accusing Pekanov of making “outright lies” and showing “incompetence.” Speaking to Nova TV, Nalbantov said the industry was doing everything possible to keep prices under control while retaining both employees and customers.

He also claimed that prices along Bulgaria’s Black Sea coast are currently around 50% lower than they were a year ago.

“There is no cheaper destination than Bulgaria. In Greece and Italy, a dinner is 30-50 euros,” Nalbantov said. He added that 24 European Union countries have differentiated VAT rates ranging from 3% to 10%.