Bread and flour will keep the zero rate
The caretaker government will prepare a draft of budget for 2023, as the extended 2022 budget expires in April. Finance Minister Rositsa Velkova stated at a briefing after the government meeting that the draft amendments to the tax laws will be published on Friday. The draft budget itself will be presented immediately after the elections – on April 3.
If spending limits, approved by the previous National Assembly, are not introduced, the deficit would reach 6.9% of the estimated gross domestic product for 2023, the minister pointed out. This is incompatible with the conditions for our admission to the Eurozone.
In general, the draft national budget provides for the reduced rate of VAT for some goods due to the pandemic, which currently applies until the end of June, to return to the total of 20%. The lower and zero rate is proposed to remain for bread, flour, baby food and books. The relief for fuels, electricity and restaurants will be abolished.
It is also proposed to increase the excise duty on e-cigarettes, strengthen fiscal control and a prior obligation to declare VAT on selected risky goods.
Rositsa Velkova said that a one-time taxation of excess profit for all businesses. The state-owned companies, after deducting the accounting loss, will have to contribute 100% of the calculated dividend to the budget.
Some companies with excess profits in 2022 will be taxed under a European regulation. Namely: the profits for 2019, 2020 and 2021 are averaged, increased by 20% and compared to the realized profit for 2022. The difference is charged at 33% tax. Payment is proposed to be in installments.
It is also planned that toll fees and concession fees will be updated with inflation.
Velkova also announced that the increase in pensions according to the Swiss rule is planned in the budget.
Money will also be provided to pay for the accepted salary increase in the administration, as those that have not been changed in 2022 will also be increased by 10%.
The employees of the two revenue agencies – the National Revenue Agency and the Customs Agency – will receive 15% higher salaries if the pledged additional BGN 6 billion revenues for the year are exceeded and another 10% when they are 100% collected.