Parliament Rejects Opposition Motions to Scrap Flat Tax

Bulgaria will keep its flat tax rate of 10%, Parliament has decided, rejecting motions to re-introduce progressive taxation.

The minority government coalition of centre-right GERB and right-wing Reformist Bloc on Wednesday joined forces with opposition liberal Movement for Rights and Freedoms, or DPS, to defeat on first reading two separate draft amendments to income tax law demanding reintroduction of progressive taxation.

The flat rate of 10% was introduced in Bulgaria in 2008 by a Socialist-led tripartite government coalition of which DPS was part. 

The two motions to scrap the flat tax rate and replace it by a non-taxable monthly income of BGN 340 or BGN 400 and progressive taxation in four or six income brackets above the minimum were submitted by opposition Socialists and nationalist Ataka party respectively.

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