Bulgaria to Keep Flat Tax, Reduce Deposit Interest Tax in 2014
Bulgaria's ruling socialist party will fulfill all election promises except for the ones concerning the flat tax and the deposit interest tax, according to BSP MP Kornelia Ninova.
Speaking during a conference of the Sofia-city unit of the Bulgarian Socialist Party (BSP) on Saturday, she shed light on the plans of the socialists for Budget 2014.
"We cannot fulfill our pledge to revoke the flat tax, we lack the support of 84 MPs, we do not have the backing of our colleagues from the Movement for Rights and Freedoms (DPS) party on this," Ninova declared, as cited by Darik radio.
She made clear that the tax on interest earned from bank deposits would also not be abolished, adding that BSP planned a gradual reduction in the percentage by the end of the term in office of the socialist-led government.
Ninova explained that the tax on interest earned from deposits was to be reduced from 10% to 8% in 2014.
"The budget we are to review and adopt was approved with great difficulties after talks with our colleagues from DPS and a part of the ministers" she said, adding that the draft was different from the one initially proposed by the government and it fulfilled BSP's election promises to a large extent.
She pointed out that a total of BGN 11 B had been earmarked for social activities under the draft budget for 2014.
Socialist MP and former Economy Minister Rumen Ovcharov insisted that the achievements of the current government in the spheres of social policy and financial consolidation proved that it was working.
He warned, however, that BSP had to fight the creeping populism plaguing the party, citing as an example the newly adopted extension of the moratorium on arable land purchases by foreign investors, the proposed revocation of the full smoking ban in enclosed public places, and the tinkering with energy prices.
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