site.btaAmCham Strongly Opposes Additional Tax Burden on Mining Industry

The American Chamber of Commerce in Bulgaria (AmCham Bulgaria) issued a statement Tuesday strongly opposing the proposed additional tax burden on strategic sectors of the Bulgarian economy, such as the mineral industry, in the draft State Budget 2025. The statement was sent to the National Assembly Chair, the caretaker Prime Minister and the Ministers of Energy and Economy.

"We find unacceptable the introduction of a 'mineral extraction tax', which by its very nature demonstrates a disproportionate treatment of economic entities operating in the territory of the European Union and introduces discriminatory situations with their double taxation," AmCham wrote. Such proposals would negatively affect the investment climate and business environment in the country, the statement added.

"We express our opposition to such practices being introduced without an institutional dialogue, without a thorough analysis of the benefits and risks, as well as the consequences they entail in their possible introduction for the mining industry, as well as for the economy and the reputation of Bulgaria," the position reads. "The issue is extremely important and we ask for an urgent meeting this week," AmCham said.

The proposal to introduce a "mineral extraction tax" contains significant risks for the Bulgarian economy both in the short and long term, the statement notes. In practice, any person who has obtained a mining concession within the meaning of the Subsurface Resources Act will be liable for the tax, even if it has not started operations, AmCham added.

"Changes in the tax regime, especially when they are unpredictable, increase the tax burden and are not discussed with all stakeholders, would by definition create an unfavourable investment climate. This could delay future projects, divert capital to more favourable markets and lead to a decline in Bulgaria's competitiveness as an investment destination in this and other sectors," AmCham concluded.