'Tax Freedom' Day to Arrive in Bulgaria on May 1

Business » FINANCE | January 3, 2014, Friday // 14:55
Bulgaria: 'Tax Freedom' Day to Arrive in Bulgaria on May 1 In 2014, Bulgarians will earn about BGN 228 M a day on average. File photo

Bulgarians will work to pay their taxes this year until Labor Day - May 1, according to a publication by the Institute for Market Economy, a Sofia-based think-tank.

The so-called "Tax Freedom Day" is a symbolic date when employees stop working for the State treasury and begin earning for themselves.

In Bulgaria, this day traditionally falls in May, and its earlier arrival over the last four-five years is attributed to the economic crisis and the wider budget gap i.e. the State seemingly takes less, but continues to spend as before by using reserves and accumulating new debts, the Institute's experts say.

The symbolic calculations further show that from May 1 until May 5, Bulgarian tax payers will no longer work for the State, as it will cover expenses via loans. At the end of the day, however, those five days will be for the benefit of the treasury, sooner or later.

In 2014, Bulgarians will earn about BGN 228 M a day on average, meaning they need 120 days in order to produce nearly BGN 27 B in revenues slated for the budget.

The Institute's experts further point out that over the last few years the focus on bringing more revenues in the treasury gives a false impression of more freedom as revenues from VAT, excise duties and corporate taxes have suffered a great deal from the crisis.

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Tags: revenues, Tax Freedom Day, budget deficit, GDP, Institute for Market Economy, taxes, VAT, excise
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