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IMF: Bulgaria could have postponed the lowering of the corporate tax

According to IMF, year 2007 was not the proper time to reduce the corporate tax to 10% with the aim to strengthen the competitiveness of Bulgarian economy. 

This is stated in a report of the analytic company Oxford Business Group regarding Bulgaria's economic development. The international experts claim that the country's budget for 2007 will be burdened on one side by payments to the EU budget. On the other side the private sector could be good source of state funding due to its continuing growth and development. The postponement of the reduction of the corporative tax will not harm much Bulgaria's economy because the former 15% tax was also attractive for most of the investors, comment the IMF experts.

The international financial organization claimed that the planned economic growth will be as the forecast by the government one of over 6% in the next few years. At the same time the inflation decrease process will continue. IMF forecasts inflation to reach 4.6% by the end of the year after last year it was 7.4%. According to the IMF financial experts the deficit on the current account is the main problem for Bulgaria, and its reduction should be at the forefront of the government's efforts.

IMF predicts the deficit to grow to 16.6% of the GDP by the end of 2007 after the export growth continues to lag far behind the increase of foreign goods import. The continuing growing of the deficit could have negative impact and could cause external shocks to Bulgarian economy. (