April 20 is Tax Freedom Day for Bulgarians

Finance | April 19, 2012, Thursday // 14:50|  views

Bulgarians are anticipating Tax Freedom Day, which is April 20 for 2012. File photo

Bulgarians will stop "working for the government" for this year on April 20, according to data provided by the Institute for Market Economics (IME)

The Day of Freedom from Government, or Tax Freedom Day, as it is popular around the world, is the day by which the nation has theoretically earned enough income to fund its annual tax burden.

In Bulgaria, Tax Freedom Day is usually in May, but has mover earlier over the past 3 or 4 years due to the lower revenues after 2008 and the emergence of a budget deficit, the IME experts argue.

In 2012, Bulgarians will be earning an average BGN 223 M per calendar day, measured in terms of projected GDP provided in the 2012 budget.

As a result, this year Bulgarians will take 111 days to earn the estimated BGN 24.8 B in revenues for the state budget.

The calculations take into account the fact that 2012 is a leap year, which means one more work day and one more day of filling the state's coffers.

Funding the VAT revenues for 2012 will eat up the largest number of days, 32.

The payment of excise duty revenues will take almost 19 days, while the funding of social security and health care contributions will take 25 days (17 for social security and 8 for healthcare).

Income tax revenues will take 10 days of work, while corporate tax revenues will take 7 days in office.

The payment of state and municipal fees will take 7 days of work, while the payment of real estate taxes will use up 3 days in office.

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Tags: Tax Freedom Day, government, tax burden, social security burden, VAT, excise duty, income tax, corporate tax, Institute for Market Economics


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