ADVERTISEMENT

Bulgaria adopts flat tax, lowest in Europe

Banking

Bulgaria’s Parliament accepted Friday at first reading the amendments to the taxation law that introduce a flat tax of 10 %.

The country’s flat tax rate will be the lowest in Europe and among the lowest in the world, down from a rate that currently ranges between 20-24%. The amendment proposed by the cabinet triggered fiery debates when it hit the parliamentary floor. “This tax system will further deepen the social inequity in Bulgaria,” Socialist MP Georgi Bliznashki said. In a country where the shadow economy is estimated at 30-40% the flat tax system is the only way to make oligarchs and rich Bulgarians pay their taxes, former PM Ivan Kostov and leader of rightist Democrats for Strong Bulgaria (DSB) party stroke back.

Since Estonia accepted a flat tax system in 1994 enjoying stable GDP growth, Eastern European countries have been attracted to the flat tax that promises to attract foreign investments and increase transparency. Slovakia, Romania, Albania and many former Soviet republics have all adopted a flat tax. (novinite.com)

ADVERTISEMENT

Average age of coronavirus patients declining Analysis

Average age of coronavirus patients declining

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.