About BGN 400 M in Bulgaria's 2010 Budget revenue are expected to come from curbing illegal smuggling activities.

This was announced Friday by Bulgaria’s Finance Minister, Simeon Djankov, during his visit to the northeast city of Targovishte, where he met local businessmen.

Djankov pointed out that in addition to the increased state revenue, the anti-smuggling measures of the government were also going to reduce contraband in Bulgaria as a whole, which would improve the opportunities for doing business in the country, and thus boosting the country’s GDP.

The Finance Minister stated the period for state refund of value-added tax to businesses must be reduced from 30 to 20 days, and that it should be the same for all kinds of firms. In his words, this change must be approved by the Parliament but there were indications that they would be adopted in the coming months.

Djankov pointed out that within a few weeks the government’s program of specific priorities and task was going to be made available. He also said the government wanted to reduce the 20% VAT by the end of its term.

The government is not planning to raise any taxes in 2010; the only taxation policy change would be the decrease of employers’ social security payments by 2%.

“We are going to leave an opportunity to expand the state expenditures if by the middle of 2010 the state revenue starts to rise. My expectations that the Bulgarian economy will start to take off at the end of the spring of 2010,” Djakov declared.

As Djankov was about to visit the National Revenue Agency office in Targovishte, he was stopped by a 25-year-old beggar (See photo). The Minister gave the man his phone number, and said he would help him.

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