site.btaCabinet Proposes One-Off Charge for Mining Businesses Instead of Initial Tax Plan

The government proposes a one-off charge for mining businesses to substitute its initial plan for a new tax. The proposal was made public at the Council of Minister's headquarters Friday by Energy Minister Vladimir Malinov. "Thanks to the help of all organizations which raised the issue, we were able to achieve a balanced solution where we will have a one-off contribution to the public purse by all concession holders for subsoil resources in 2025, of the amount of BGN 140-150 million," said the Minister.

The government's plans, which transpired as it put out the 2025 state budget bill, to introduce a new tax on mining businesses triggered an outcry across the sector and other business associations, and prompted a protest by miners in Sofia earlier this week.

Malinov said that his personal position is against the initial plan for a tax as it would impact adversely the investment climate and future investments. "We believe that at a time when the Bulgarian energy industry is experiencing serious hardships, the imposition of additional taxes on coal mining that is the backbone of the Bulgarian energy mix at the moment, is not a measure we would support," he argued.

In the past 48 hours his team had talks with all concession holders - Bulgarian and foreign alike - which mine subsoil resources. Thanks to that, and with the help of the Finance Ministry, a decision was made that would cater to the interest of investors and the development of the sector, while satisfying the needs of the public purse, said Malinov.

Asked how the size of the charge would be set, the Minister explained that it will be based on the expected revenue from concession royalties for 2024. The aim for this contribution to the revenue side of the budget is to be as much as the concession royalties estimate.