Today, at an extraordinary meeting, the Council of Ministers adopted the package of tax laws, which will be sent to the Parliament as early as this Thursday, so that they can be considered in the Committee on Budget and Finance. This was announced by the Minister of Finance Asen Vassilev at a briefing in the Council of Ministers.
He recalled that the tax laws were published for public discussion at the end of September.
A number of texts from the package of changes to the tax laws remain controversial. Perhaps the most commented on was the VAT rate for restaurateurs, which is 9% until the end of the year, and the reduced indirect tax was introduced due to the shock of the Covid restrictions. The Ministry of Finance is of the opinion that the rate should return to 20%, but is ready to give in to keep it in a reduced form.
Another controversial measure was the change in the taxation of civil contracts, as well as the introduction of the possibility to recover part of the tax collected after reporting to the National Revenue Agency, which did not enter the treasury due to a violation.
During the discussions within the tripartite council, line minister Asen Vasilev stated that a materiality threshold will be introduced. The patent for mushroom pickers and herbalists also causes a lot of comments.
Passage of tax laws is key to the revenue side of the budget. The proposals for next year’s financial framework have not yet been officially presented, but it is already clear that next year’s average annual inflation is expected to be below 5 per cent and the deficit on an accrued basis to be 3% of gross domestic product.