The Ministry of Finance does not foresee an increase in taxes for next year. This was announced by the Deputy Prime Minister and Minister of Finance Lyudmila Petkova after a meeting of the National Council for Trilateral Cooperation.
“Bulgaria‘s draft budget for 2025 will have a 3 percent deficit,” said Petkova.
The submission of the draft budget will be delayed and it will be proposed to the next 51st parliament, as will be the case with changes in tax laws, Petkova said.
A draft budget has already been discussed with social partners and the National Association of Municipalities in Bulgaria, but consultations with the parties that will enter the parliament are also forthcoming. I hope that the parameters of the draft budget will be approved, at least for the most part, said Petkova.
We do not propose changes in the rates of the main tax laws – the VAT Law, the Law on Company Taxes and the Personal Income Tax, Petkova pointed out.
The draft budget envisages the return of the VAT rate of 20 percent on bread and for the activities of restaurateurs. The annual effect of the return of the rate is BGN 400 million, said Petkova.
The Deputy Prime Minister reminded that the government cannot submit changes to the National Recovery and Sustainability Plan (NRSP) to the European Commission without the sanction of the Parliament. She called for quick consideration of the proposals for changes in the parliament, because the deadlines for the implementation of the projects under it are getting shorter and shorter.
The social partners today supported most of the changes in the tax laws. The representatives of the employers’ organizations expressed reservations regarding the declaration of data on durable tangible assets and material stocks on a quarterly basis, the burden on transport companies with the obligation to transmit information to the “Customs” agency, as well as regarding the introduction of a sanction for legal entities in case of non-declaration of tax information to the NRA, writes BTA.
KNSB stated that they support changes in tax laws, but are against the philosophy of the tax-insurance system in Bulgaria, which burdens poorer people. The union announced that they have proposals for changes in taxes, which will increase budget revenues by BGN 4.7 billion in one year. The proposals include raising the corporate tax rate from 10 to 15 percent and introducing a financial transaction tax.