Bulgarian Syndicates to Challenge Deposits Tax in Court

Finance | October 14, 2012, Sunday // 14:03|  views

The President of the trade union Confederation of Labor "Podkrepa" (Support), Konstantin Trenchev, blasted the Cabinet for making the decision to tax bank deposits without a public debate. Photo by BGNES

The Bulgarian labor unions plan to challenge before the Supreme Administrative Court, VAS, the new tax on interest of bank deposits of individuals.

The plan was revealed Sunday by the President of the Confederation of Labor, Podkrepa, Konstantin Trenchev, speaking for the Bulgarian National Radio, BNR.

Trenchev blasted the Cabinet for making the decision without a public debate while the Three-Way Council model, between the syndicates, the government and the business, calls precisely for such dialogue.

"The National Three-Way Council met last week, and participants received prior to it a copy of the draft budget. Mine did not contain anything about a tax on deposits. On the very next day, to our huge surprise, we learned about the idea being passed by the Council of Ministers. This speaks volumes, this approach is alarming," said Trenchev.

He stressed the 2013 Draft Budget is a demonstration the Cabinet of the ruling Citizens for European Development of Bulgaria party, GERB, is desperately seeking money.

The leader of the other major trade union, the Confederation of Independent Syndicates in Bulgaria, KNSB, Plamen Dimitrov, noted the budget had very few social policies and forecasts increased expenses.

He highlighted other ways, proposed by KNSB, to increase revenues such as limiting cash payments to BGN 5 000, mandatory direct deposit of all salaries, and criminalizing benefit contributions' evasion.

Dimitrov warned of large-scale protests if the Cabinet fails to fulfill promises to increase teachers' salaries.

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Tags: Confederation of Labor, Podkrepa, Konstantin Trenchev, Cabinet, public debate, three-way council, KNSB, Plamen Dimitrov, court, VAS, GERB, interest, bank deposits, draft budget, income


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