site.btaThis Year'sTax Freedom Day Will Be May 2

This Year's Tax Freedom Day Will Be May 2


Sofia, January 9 (BTA) - By May 2, 2015, Bulgarians will
theoretically have earned enough income to pay their annual
taxes, according to a forecast by the Institute for Market
Economics (IME) published on Friday. This will be the nation's
Tax Freedom Day, the day of the year when, figuratively
speaking, people stop working for the government and begin
working for themselves, IME said. It is the time by which the
public purse would be filled up if the government collected all
income from the nation at once.

The economists explained that in 2014 the national budget was in
big trouble as the money taken from the citizens was not enough
to pay for the government's expenses. In 2015, the period from
May 2 (Tax Freedom Day) until May 13 is theoretically the time
when taxpayers will be "exempt" from working for the government
as the Exchequer will fund part of its spending with loans.
These loans, however, will generate the national budget deficit
of the year, which will have to be offset by taxpayers sooner or
later, IME said. The deficit is projected at 2.5 billion leva
(1.28 billion euro).

The method for calculating these symbolic dates is relatively
simple: the revenues going into the consolidated national budget
(not counting external aid) are measured against the country's
gross domestic product (GDP). The numbers are only taken from
official data or forecasts by the government. The reason for
excluding external aid, which comes primarily from the EU, is
that it does not originate directly from Bulgarian taxpayers'
money, the Institute explained.

In 2015, Bulgarians will produce an average of 226 million leva
(115.6 million euro) in GDP every calendar day, based on the
official projections used in the national budget scheme for
2015. This means that it will take 121 days in the year to
produce the projected 27 billion leva (13.8 billion euro) in
national revenues for the public purse.

In 2015, value-added tax will take the most time, 35 days, to
produce, compared with other types of public revenues - again,
figuratively speaking. Excise duties will take 19 days to
produce. Social insurance will require 21 days, and health
insurance 9 days. Personal income tax will be generated in 12
days, while corporate income tax will be generated in 7 days.
Another 8 days of work will be necessary to earn the money for
central and municipal government fees, IME said.