13.10.2012

The introduction of a flat low-rate tax requires unpreferential implementation, says the Deputy Prime Minister and Minister of Finance Simeon Djankov for Trud Daily. Bulgaria is the only EU member that does not levy interest earnings of individuals. The National Revenue Agency collects and sends the tax of the other EU members, while Bulgaria does not collect such revenue from Bulgarian citizens in other states, he states. This privilege, according to him, is an unjust aspect of the previous reform in the tax system and should therefore be adjusted despite the fact that this decision comes at an uncomfortable time, i.e. the last year of the Government\'s term of office. The Finance Minister says that he anticipates several favourable effects from the broadening of the flat-rate tax base. Among them are the additional revenues of around BGN 120 million to cover part of the pension increase in addition to some inflows and economic recovery, he adds. Minister Djankov does not expect shifting of deposits and savings outside Bulgaria because of the higher tax rate in EU states.

The key policies in the 2013 budget are increase in revenue, investment in infrastructure projects and education, says Mr. Djankov. He explains that the expected sources of the revenue increased by BGN 1.8 billion will be VAT and excise duties, concessions and dividends from state-owned enterprises.