Bulgarian government proposes tax exemption for low-income earners

By bne IntelliNews November 19, 2013

The Bulgarian government will include a tax exemption for low-income earners in the 2014 draft budget before the bill goes to parliament for a second reading vote, PM Plamen Oresharski was quoted as saying on Nov 19 by investor.bg. The exemption will be in the form of a tax credit, i.e. it will be granted in recognition of taxes already paid. 

Oresharski said the tax credit could be first claimed in 2015, when workers earning the minimum wage would be able to apply for tax refunds on income earned in 2014. Accordingly, the proposed amendments to the tax code would need to be taken into account only a year from now when the government prepares the budget for 2015, the PM said.

It is not yet clear how the tax exemption will affect public finances. The personal income tax rate is currently at 10% and according to calculations by the Confederation of Independent Trade Unions in Bulgaria (CITUB) there are 250,000 - 400,000 people earning the minimum wage of BGN 310 (EUR 158.5). The minimum wage is set to increase to BGN 340 next year and will likely rise further in 2015.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Bulgaria's BACB to acquire 99.94% of Tokuda Bank

The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more

bne IntelliNews Southeast Europe Outlook 2024

This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more

EBRD 2023: EBRD, EU and ILX to co-operate to boost private-sector finance in Emerging Europe

The European Bank for Reconstruction and Development (EBRD), the European Union, and ILX Management, an emerging market asset manager, have joined forces to enhance private-sector finance in Emerging ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    6 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    9 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  5. The models are wrong, climate change is accelerating faster than predicted
    1 day ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    29 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss