06.03.2012

\"Bulgaria has the lowest tax burden of 33.4% of GDP among all EU Member States\", Deputy Prime Minister and Minister of Finance Simeon Djankov said in the Nova Televiziya (New Television) program \"Zdravey, Bulgaria\" (Hello, Bulgaria). He confirmed the intention to lower the VAT rate by the beginning of next year, but did not commit himself with a specific date in order not to influence consumer behaviour. Minister Djankov is not in favour of the introduction of an additional contribution of 1% and stated that he was against any changes that might result in increasing tax or social security burden.

The Minister of Finance allayed the misgivings of the opposition and specified that at the moment the fiscal reserve was BGN 4.3 billion. The Finance Minister was explicit that it was not correct to speculate and to link the proposed changes in the management of the so called Silver Fund with the pending external debt payment at the beginning of next year. According to him part of the financing of that payment on maturity could be by government securities and part by Euro Bonds, while for the international market it would be wiser to wait for a more auspicious moment. Bulgaria has the highest sovereign credit rating in Eastern Europe and is the only EU Member State whose rating has been upgraded, the Minister stressed.

Minister Djankov announced that at the end of the week the Council of Minister would consider the Ministry of Finance proposals for changes in the setting of bank credit interest rates and charges. According to him the aim is to achieve more transparency and implementation of market principles when establishing bank charges on consumer credit.