Bulgaria’s parliament has approved government plans to cut VAT on food provided by restaurants and catering services from 20% to 9% from July to help an industry hit hard by the coronavirus crisis.

The cut would run through 2021 as a temporary measure to help the sector recover. It would not affect alcoholic drinks bought in restaurants and provided by caterers, which will still attract a 20% VAT rate.

The plan was floated by Prime Minister Boyko Borissov last month despite opposition from his finance minister. It was also criticised by economists who say it would open the door for many more industries to seek tax cuts.