Bulgarian Economists Blast Socialist Govt's New Tax Break

Business | November 25, 2013, Monday // 17:09|  views

According to Bulgarian experts, the tax refund for people with the lowest wage is not only difficult to administer, but it will divide Bulgarians even further. File photo

Bulgarian economists have slammed the plan of the Socialist-endorsed government to offer full tax refund for people earning minimum wages at the beginning of 2015.

They say this is a measure not only difficult to administer, but it will divide Bulgarians even further.

Speaking for Darik radio Monday, the former Director of the National Social Security Institute (NOI), Yordan Hristoskov, labeled the move "the next hasty non-sense." Former Deputy Finance Minister, Lyubomir Dazov, was firm the administrative burden will outweigh by much the benefit and will hurt the State budget seriously.

Economist Georgi Angelov from the Open Society Institute said that in addition to the administrative burden, another negative effect would be caused by a large number of people with low wages formally enlisting as making the minimum one, which will strengthen the shady economy and harm the social benefits system.

Hristoskov proposed increasing the minimum wage instead, as labor is underpaid in Bulgaria, stressing that all worries that upping the lowest salaries by BGN 10-30 would increase the unemployment rate were unfounded.

He further explained the minimum wage should be different for the different sectors and negotiated between the labor unions and the employers.

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Tags: refund, tax, relief, poverty, minimum wage, Declaration, return, economists, administrative burden, shady economy, social benefits, minimum wages, state budget


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