PM Boyko Borisov unveils that the cabinet considers cutting the VAT rate by 3pps from 20% at present to 17% in 2011 According to the programme of the government posted at the website of the council of ministers, the VAT rate is to be cut to 18% by the end of the mandate of the government, which expires in July of 2013. In October, finance minister Simeon Dyankov unveiled plans for cutting VAT rate to 16% by the end of the mandate and said also that the rate will remain flat for all taxable items. VAT revenues accounted for 33.8% of tax revenues and for 27.4% of total budget revenues last year. They started to contract dramatically since the beginning of the year on lower imports mainly. A month ago, the parliament approved amendments in VAT legislation envisaging a reduction in the deadline for VAT refund to three from five months at present. The change will be effective as of January 1.