Declaration of the AOBR in support of the current tax system in Bulgaria

In connection with the frequent political statements regarding a change in the income policy linked to a change in the tax system, the nationally representative organizations of employers AIKB, BSK, BTPP and KRIB, united in AOBR, stand in a principled position in support of the current tax system of Republic of Bulgaria, which is prepared in such a way as to provide predictable conditions for the performance of economic activity in the country.

At the same time, the AOBR has repeatedly expressed positions to reduce the overall tax burden for businesses and citizens in support of economic growth and jobs, but after conducting a thorough and responsible public and expert debate. In this regard, any radical change in the system would put at risk and question the stability and predictability of the business environment and would send unfavorable signals to businesses and investors.

It is for this reason that the imposition of any changes in it, especially after it has proven its adequacy through the continuous improvement of the collection and implementation of the revenue part of the budget, should be avoided.

The stability of the tax system is the basis of the economic recovery and growth after 2008, as the third term of the government keeps its promises in this direction.

We categorically support the current model, which has existed since 2008, and for 12 years has proven its success in terms of attracting foreign investors to our country.

The change in the VAT rate for one sector is not a change of the tax system, but a limited anti-crisis measure of a temporary nature, which we tend to support, because it will operate within a year for the sector, which was brought to its knees in the conditions of the economic crisis caused by the COVID-19 pandemic and which needs rapid resuscitation action, which is why we consider this one-off measure appropriate, especially since it is linked to an increase in the minimum insurance income in the sector.

The representative organizations of employers at the national level, whose members provide work for 82% of the employed and create 86% of the gross added value in Bulgaria, we are firmly convinced and categorically insist on preserving the current tax system as a condition for the stability not only of the business environment, but also with a view to preserving economic and social stability in Bulgaria.