Shocker: Bulgaria Drops from UK Tourists' Cheapest Summer Spots List
In an unexpected turn, Bulgaria and Turkey have been notably absent from the list of the ten cheapest European summer destinations for British tourists
Bulgarian banks plan to offer customers roundabout services to cushion the impact of the new 10% levy on people's income on their bank deposits, which is expected to come into force from next year.
"Banks will offer legal alternatives so that this tax can be reduced or avoided," Levon Hampartzoumian, CEO of UniCredit Bulbank, told the morning broadcast of Nova TV Channel on Wednesday.
"If, for example, the client is obliged to bring in the budget 10%, the bank may offer an alternative that will cost him only 2%," he added.
Hampartzoumian vehemently rejected the government's argument the new levy will force richer people with huge bank deposits to pay tax on that income, hinting the move is pure pre-election gambit.
"Who are those rich people? Those, who fill up the columns of lifestyle magazines and show off their flashy lifestyle because they live on credit? Or those, who have long ceased to pay taxes because they have transferred all their money to some sunny island?"
Bulgarian finance minister has made clear his strong determination to push through parliament the proposed 10% tax on bank deposit income from next year.
According to Mininster Djankov in this way the country will join the European banking system, be able to collect taxes on the income from deposits and investments of Bulgarians abroad and improve social inequality.
Bulgarians will be obliged to include the income on bank deposits in their tax declarations a year later – in 2014 – after the taxation process is streamlined, the finance minister has suggested.
Djankov has agreed that the introduction of a tax-free threshold is a good idea, but said it was too early to discuss it.
Both economists and the central bank have slammed the government's decision to introduce a 10% tax on bank deposit income, saying this would dent people's savings and shake the bank system foundations due to capital outflow.
The government said the new tax aims to raise BGN 120 M and force richer people to pay taxes on the income they earn from bank deposits.
Banks in Bulgaria continue to record steady growth in savings, a trend which has been gaining momentum throughout the past half year, official data shows.
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According to the latest data released by the National Statistical Institute, Bulgarian household incomes experienced a remarkable surge in 2023, reaching an average of BGN 10,846 per household member.
The National Statistical Institute's latest report unveils a marginal annual increase in the income of Bulgarians in 2023 compared to their expenses, marking a reversal of the trend observed in 2022
In a recent interview on Nova TV, former Minister of Economy Bogdan Bogdanov expressed skepticism regarding Bulgaria's prospects of entering the Eurozone at the outset of 2025
The path to Eurozone accession for Bulgaria may see a significant milestone in 2025, albeit not at the outset of the year, according to Dimitar Radev, the governor of the Bulgarian National Bank (BNB)
Amidst discussions about Bulgaria's journey towards joining the Eurozone, Deputy Governor of the Bulgarian National Bank (BNB), Petar Chobanov, highlighted the robustness of Bulgaria's banking system, stating it aligns closely with Eurozone standards
In a recent interview with BTA, Kristalina Georgieva, Managing Director of the IMF, emphasized the importance for Bulgaria to seize the opportunity to adopt the euro, stressing that it is achievable with the right political will
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