Bulgarian Economy Could Suffer EUR 800 M Losses Over Greek Tax Policies

World » INTERNATIONAL BUSINESS | April 8, 2015, Wednesday // 08:45
Bulgaria: Bulgarian Economy Could Suffer EUR 800 M Losses Over Greek Tax Policies Photo: BGNES

Close to EUR 800 M will be the total losses for Bulgaria's economy over the course of the year in case Greece decides to implement a 26% tax on contracts with local companies.

The calculation was made by using national statistical data, showing that the annual trade turnover between the two countries amounts to EUR 2.8 B, therefore 26% would mean EUR 800 M less for the Bulgarian economy.

Additionally, Deputy Finance Minister Kiril Ananiev stated the severity of the situation at a news conference on Tuesday. The economic analysis was presented at the regular sitting of the Parliament's Budget Committee.

The new Greek tax currently affects Ireland, Cyprus and Bulgaria. The Greek government is now working on the regulations but the intention stated is for contracts with companies from the afore mentioned countries to be taxed at a 26% rate.

''In case the proposal enters into force our business will be put on a highly unequal ground,'' Ananiev added. He explained that direct financial loses could not be estimated at the moment, as the policy is not yet implemented.

The Deputy Finance Minister added that the issue should first be addressed through diplomatic talks. Additionally, the European Commission is ready to provide a statement on the case with regard to EU policies within a month.

''These texts are extremely discriminatory and pose a threat to trade between the two countries,'' stated the Chair of the Parliament's Budget Committee Menda Stoyanova.

Meanwhile, several leftist Bulgarian MPs asked the ruling coalition to impose reciprocal measures that would respond to what is largely deemed a heavy blow to Bulgarian businesses. 

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Tags: Bulgaria, greece, stock exchange, economy, damages, Menda Stoyanova, Kiril Ananiev, Cyprus, ireland

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