Labor Minister: Bulgaria Will Not Introduce Non-Taxable Income

Domestic | October 7, 2013, Monday // 11:54|  views

Ademov explained that Bulgaria could not afford to increase social security contributions amid the crisis. Photo by BGNES

Bulgaria will not introduce a non-taxable minimum income or increase social security contributions increase, according to Hasan Ademov, Minister of Labor and Social Policy.

Speaking Monday at a forum organized by the Confederation of Independent Trade Unions in Bulgaria (CITUB), Ademov admitted that the introduction of non-taxable income amounting to the minimum monthly wage would increase disposable income, yet at the same time would bring about a huge deficit of around BGN 600-700 M in the revenue part the state budget.

"It is clear that it is not possible for the government and the Finance Ministry at this stage to afford to correct the tax scale and introduce a non-taxable income amounting to the minimum wage," Ademov declared, as cited by Darik radio.

He emphasized that the current economic growth and the collection of tax and social security revenues made it impossible to increase social security contributions.

Ademov noted that the idea of the socialist-led government to increase the minimum wage to BGN 340 as of January 2014 was yet to be discussed with the National Council for Tripartite Cooperation (NCTC).

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Tags: Hasan Ademov, Labor Minister, minimum wage, social security rates


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