Bulgaria's Revenue Agency Head Condemns Proposal for Tax-Free Monthly Income

Business » FINANCE | April 15, 2013, Monday // 15:25
Bulgaria: Bulgaria's Revenue Agency Head Condemns Proposal for Tax-Free Monthly Income Krasimir Stefanov, CEO of the National Revenue Agency (NRA), has criticized the proposal of the Bulgarian Socialist Party (BSP) for a tax-free monthly income of BGN 310 as an inapt measure. Photo by BGNES

Krasimir Stefanov, CEO of the National Revenue Agency (NRA), has said that the Bulgarian Socialist Party (BSP) consulted the NRA extensively before reaching the idea for a tax-free monthly income of BGN 310.

In a Monday interview for 24 Hours daily, as cited by dnevnik.bg, Stefanov says that the socialists ordered the NRA to conduct an analysis of the impact of the proposed measure on the budget, but the NRA only supplied the data without compiling a report.

The NRA CEO, who is currently on a leave due to his participation in the May 12 parliamentary elections, comments that the idea of BSP for a tax-free monthly income is not a good option because it will reduce the disposable income of people earning slightly more than the minimum wage to less than BGN 310.

Stefanov notes that BSP's proposal involves a tax-free monthly income of BGN 310, a 10% tax rate for incomes of up to BGN 4500 and a tax rate of 20% for incomes of over BGN 4500.

To illustrate his point that the proposal is a bad idea, he says that people earning BGN 309 a month would pay no income tax, but people earning BGN 311 would have to pay a tax of BGN 31, meaning that their disposable income would drop to BGN 280 per month.

Stefanov assures that the NRA will not experience difficulties during his unpaid leave, adding that collection rates proceed according to forecasts.

He says that questions regarding the implementation of the consolidate budget should be referred to caretaker Finance Minister Kalin Hristov.

Asked whether former Interior Minister Tsvetan Tsvetanov made Stefanov MP candidate on the list of center-right party GERB in exchange for the positive conclusions of the probe of his property, the NRA CEO says that the inspection is public and the protocols are available to anybody harboring suspicions.

Stefanov adds that he was nominated for parliamentary candidate by his fellow citizens from Harmanli, not by Tsvetanov.

Stefanov further boasts that during his term in office as CEO of NRA, budget receipts from tax and social security evasion exceeded the amount collected during the rule of the three-way coalition government.

He also says that a total of 12 800 companies were granted deferred payment of taxes amounting to nearly BGN 710 M in 2012, compared to 1600 companies and taxes of BGN 93 M in 2008.

The NRA CEO remarks that the revenue authority should be a partner, not an evil stepmother for businesses, because nobody profits from bankruptcies.

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Tags: National Revenue Agency, Krasimir Stefanov, Bulgarian Socialist Party, GERB, parliamentary elections, Tsvetan Tsvetanov, probe

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