Bulgaria President's Report Proposes Drastic Tax Reforms

The report which was comissioned by President Parvanov and worked on by experts from the Bulgarian Academy of Sciences proposed colossal tax reforms with the call "time for a new strategy." Photo by BGNES

Bulgaria President Georgi Parvanov has slammed both the new and old governments in his fourth Presidential report and has also proposed drastic tax reforms.

Parvanov again criticized the new center-right GERB government for not implementing an "urgently needed" anti financial crisis plan. The report states that a year after the crisis began Bulgaria still has no economic plan not only to remove the country from recession, but also to ensure development.

President Parvanov also slammed the old government led by socialist Sergey Stanishev at the start of his report; "first experts warned of the crisis, then businesses and citizens felt it, and then government finally admitted it." He also criticized Stanishev's government for unsoundly spending the budget surplus and limiting access to EU funds through failing to solve corruption issues.

The report which was worked on by experts from the Bulgarian Academy of Sciences proposed colossal tax reforms with the call "time for a new strategy."

It points out that the current approach based on flat low taxes as a primary tool for attracting foreign investment, has been exhausted. It proposes to cut tax to the poor and to put a 20% tax on people with high incomes:
1. Zero tax rate for monthly income up to BGN 1000
2. 10% tax on monthly income from BGN 1000 to 3000
3. 20% tax on monthly income of more than BGN 3000

Parvanov's report concludes by also proposing a reduction of V.A.T on important goods and the complete elimination of taxes on medicines.

 

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