site.bta Parliament Votes Down Socialists' Proposal for Introducing Progressive Taxation in Place of Flat Rate

Parliament Votes Down Socialists' Proposal for Introducing Progressive Taxation in Place of Flat Rate

Sofia, November 23 (BTA) - On 67-20 votes and 18 abstentions, Parliament voted down a motion by the Bulgarian Socialist Party (BSP) to introduce progressive taxation in place of the current flat income tax rate.

Mihail Mikov MP (BSP) commented that the proposed revision boils down to the fundamental question about the justice of the tax system. He said a progressive tax would increase the taxes for people earning over 1,400 leva a month.

Iskren Vesselinov (Patriotic Front) said that the proposed tax rate is no good because it hit hardest the people in the middle of the income brackets.

Evgeni Stoev argued that BSP could have set in place progressive taxation when they were on power and not now when they have 38 MPs in the 240-seat Parliament. He said the current flat income tax rate is just, people are paying their taxes and tax compliance is high.

Peter Slavov (Reformist Bloc) said that when taxes increase, 80 per cent of Bulgarians - not 40 per cent - will start to live a poor life. "What you want to do is take away money from an even larger group of people," he said as he turned to the left side of the debating chamber.