Bulgaria must give up temporarily its flat rates for income and corporate taxes because of the economic crisis, according to Labor Minister Totyu Mladenov.

Mladenov expressed his position in a bTV talk show Saturday night. His idea was immediately met with negative reactions on part of the business sector. Bulgaria’s flat income and corporate taxes are currently set at 10%.

“The progressive taxes will vary – from 10% to 22%. Those who receive higher incomes should show solidarity. The burden of the crisis has to be shared by everyone but not by the pensioners, the mothers, and the impoverished ones,” Mladenov declared surprisingly.

Bulgaria’s Finance Minister Simeon Djankov has repeated several times since the Borisov government took office in the summer of 2009 that the Cabinet would not be raising the taxes.

However, the Labor Minister demands a restoration of the progressive taxes for the duration of the economic crisis – perhaps until the end of 2011.

Bozhidar Danev, head of the Bulgarian Industrial Association, has reacted strongly to Mladenov’s idea. He believes that there might be some misunderstanding among the Ministers of the GERB government. In his view, the return to the progressive taxes could drive some foreign investors away and will contribute to the deepening of the crisis as it will take away money for potential investments from the business sector.

Danev said, however, that the trade unions might support Mladenov’s idea. On Sunday, six business organizations and the two major Bulgarian trade unions are going to present their position on the anti-crisis package of measures being currently prepared by the Finance Ministry.