site.btaSocialist Party Coalition Tables Legislative Revisions to Replace Flat Tax with Progressive

Socialist Party Coalition Tables Legislative Revisions to Replace Flat Tax with Progressive

Sofia, October 29 (BTA) - The Bulgarian Socialist Party (BSP)
Left Bulgaria has tabled a bill to revoke flat tax and replace
it with progressive tax. The left MPs are suggesting revisions
to the Natural Persons Income Tax Act with the aim to distribute
the tax burden more fairly. The motion is that the revisions
should become effective as of January 1, 2015.

In execution of the party's pre-election commitments BSP has
tabled revisions to the Natural Persons Income Tax Act
consisting of two focal points - progressive income taxation and
an element of family income tax, BSP Left Bulgaria Floor Leader
Mihail Mikov told journalists Wednesday.

What is being offered as a scale is tax-free income up to the
minimum salary amount, 10 per cent for the sum exceeding 300
leva in the 340-1,000 leva range, 66 leva plus 12 per cent for
the sum above 1,000 leva in the 1,000-2,000 leva range, 185 leva
plus 15 per cent for the sum above 2,000 leva in the
2,000-5,000 leva range, and 636 leva plus 20 per cent for the
sums exceeding 5,000 leva, Mikov explained.

The proposed tax reform also introduces an element of family
tax, the tax-free income being raised by 15 per cent for a first
child and by another 10 per cent for a second. This is a
consequence of the grave demographic situation in the country,
Mikov said.