“I don’t think it’s time to abolish the flat tax. This is one of the small policies that in the last 15 years are known outside Bulgaria. If we change this, there will be nothing to attract foreign investors, bearing in mind the political instability, the low absorption of European funds”. This was stated by the former Minister of Finance Simeon Dyankov in the “Day Live” program on NOVA NEWS.
He does not expect to form a majority to cancel the flat tax. “I don’t see such a coalition,” said Dyankov and recalled that this levy was adopted at the time of the Triple Coalition.
“I would not change the current tax model, but we are in a situation of chronic deficits,” Dyankov said. According to him, taking 100% of the dividends of state-owned companies filled the budget deficit so that our country could reach the cherished 3% budget deficit. Such an operation puts us in debt every year, said the financier.
“At the moment, the debt of the state is about BGN 45 billion, but with the promises that have already been planned, the debt becomes BGN 61 billion. In this situation, I assume that a change in the tax system will be necessary, or the Minister of Finance needs to determine where the costs will be reduced”, said Dyankov. “The problem was that there was no investment in infrastructure, nor in competitiveness,” he added.
Will there be tax reforms in Bulgaria?
According to him, the next regular government should be formed very quickly. It can, within a few months, make Bulgaria quickly enter the Eurozone and Schengen within a few months. “Bulgaria is the only country that has only one tranche under the PVU”, explained the financier.
He expects that after the elections GERB-SDS and PP-DB will start talking. “There will be different opportunities. There will be another option – right liberal – GERB, ITN and DPS. For me, this is also a good opportunity to enter Schengen and the Eurozone,” said the former finance minister in Boyko Borisov’s first cabinet.
According to Dyankov, the pension reform during the time of Ivan Kostov was good, but already outdated. “It’s time for her to reconsider. We all know the problems with the current pension system”, said the former finance minister, during whose administration the Silver Fund was also opened to supplement the state budget. He is adamant that the pension reform always brings political disadvantages.
The EC called on Bulgaria to introduce the European rules for criminal prosecution and public procurement
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