Losses that the grey economy incurs on Bulgaria's budget have been estimated at BGN 1 B due to the non-payment of taxes and social security contributions.

This emerged at a debate on the sustainability of Bulgaria's state pension system, which took place in Sofia.

A total of BGN 500-600 M fails to factor in the pension fund alone.

Experts reiterated concerns over the steady trend of an ever-shrinking and ageing population in Bulgaria. Retirees accounted for 25% of the population last year and are expected to increase to 30% and 40% in 2025 and 2050 respectively, data of the Labour Ministry shows.

The trend will naturally increase the tax burden on the working people.

MEPs and Ex-Social Ministers Lidiya Shuleva and Hristina Hristova also joined the event.

The two ladies announced they are to launch a new draft for allocation of a certain percent of the taxes into an additional private pension fund. The bill is to concern Bulgarians, who were born later than1960.

Shuleva said that "such a tax investment" should be combined with paying in the same amount of money from the employer as well.

Bulgaria's Deputy Financial Minister Lyubomir Datsov said the proposal should be discussed not only with the state officials but also with the employers.

Bulgarian politicians seek for reforms in the pension system because of the protests against its gaps, which are recently being staged more frequently.

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