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A senior ministry of finance official argues that 30-ton trucks loaded with fruits and unaccompanied by the requisite documents, are illegally travelling abroad, mainly to Bulgaria. He stressed that the issue is of particular importance for the government and its policy on trade and competition. As sources from the trade and consumer protection commission, tackling the problem together with the ministries of agriculture and finance, point out, the smuggling of fruits and vegetables leads to tax evasion, it also undermines legitimate trade and control of product safety and quality. In parallel with the farmer taxation plan, the following measures to combat illegal trade are being mooted:

• Introducing a common set of tax rules for agricultural companies and farming income, especially with regard to accounting records. The way it is now, farmers under a special regime are exempt from costs and income book-keeping while being taxed under a different system. When buying farm produce directly from farmers, firms are obliged to issue them with invoices. For their part, farmers are entitled to issue a single invoice for the sale of their entire output. This practice often leads to traders issuing documents for higher prices than the actual ones, which allows farmers to get higher VAT recovery rates while traders enjoy better margins.
• Introduction of temporary work permits to farm hands and scrapping the residence permit requirement for foreign workers. Wages will be recorded as expenses by farmers or agricultural companies, which will motivate them to keep their workforce in the open: thus the black labour market will take a hit. Workers will have employment contracts and social insurance will be paid for them.
• Combating tax evasion in agricultural inputs as well (e.g. seeds, fertilizers, pesticides, other preparations). This can be achieved by requiring costs and income records.

It should be pointed out that apart from loss of revenue and harming competition, fruit and veg smuggling leads to negative consumer effects and opening the scissors between farmgate and retail prices.