site.btaFinance Minister, Greek Businesses Discuss Bulgarian Tax System, National Recovery Plan Projects

The tax system in Bulgaria, the country's accession to the euro area and the projects under the National Recovery and Resilience Plan were the three main topics discussed by Finance Minister Assen Vassilev and over 100 managers of Greek companies in Bulgaria at a meeting organized by the Hellenic Business Council, the Ministry of Finance press service said here on Monday. The meeting was attended by representatives of major investors in the metallurgy and metalworking, banking, cement and petroleum products trade and other sectors, as well as the Greek Ambassador to Bulgaria, Alexios Marios Lyberopoulos, and the Republic of Cyprus, Haralambos Kafkarides.

Vassilev said: "What Bulgaria has as conditions for economic development is exceptional. Business is building the backbone of this environment, and the state is lending you a hand to make tangible progress. He said that taxes for business will not be raised in the coming years and the state will support investments through guarantees. The Minister said that changes to the Investment Promotion Act will make it possible to give 100% of what Europe allows as state aid for capital investment to businesses, which should boost the accumulation of physical capital in the country.

Vassilev emphasized that Bulgaria has one of the lowest electricity prices and a well-developed energy infrastructure. The state's priority is to invest in roads, railways, better healthcare and education, as well as in human capital. "We are currently at about 20% of the eurozone average capital to labour ratio. The job of business is to help our workers become more productive by providing physical capital and higher paid jobs, and the job of government is to provide the infrastructure and human capital. Our policy is to make labour more expensive, yet more productive," Vassilev said.

The Finance Minister said that he is working with the Greek Transport Minister and is confident that the North-South corridor road connectivity from Alexandroupolis through Bulgaria and Romania to Moldova and Ukraine will be implemented. He reported that the state will invest EUR 6 billion in the project in the coming years. "We need to upgrade rail connectivity, so that cargo can reach Mediterranean ports faster," Vassilev said. He said that the 2024 budget has BGN 12 billion allocated for capital expenditures, of which BGN 10 billion is for useful infrastructure for businesses.