VAT in Bulgaria May See Hike in 2006
VAT in Bulgaria May See Hike in 2006
VAT rate may be increased by 2%, unless the current account deficit start decreasing, a deputy finance minister said.
The increase of VAT is contradictory to any of pre-election platforms advocated b the ruling parties, Georgi Kadiev said, but this is seen as one of efficient measures that would stop the bulge of the deficit.
He said also that should the cut in social security burden on the workers generates results, the rate may be downed by another 2%.
The up-trend of the current account deficit has been one of main fields of battle during the talks between the government and the IMF.
In the end of last year, while reporting on the fiscal policy, Finance Minister Plamenr Oresharski mentioned a possible VAT increase only as a last-recourse gear to melt the current account deficit.
More: novinite.com