The excess profit tax should also cover energy and oil companies, said economist Georgi Angelov and the honorary chairman of the Association of Industrial Capital in Bulgaria Vasil Velev. The two commented on the 2027 budget proposals, measures against high prices and changes in tax policy on BNT.
The Ministry of Finance is proposing a 33% excess profit tax for banks, payday loan companies, insurers, telecommunications companies, exchange offices and retail chains with more than five outlets. According to Velev, however, the list should be expanded to include energy companies.
“What is really missing is taxation of the excess profits of energy companies,“ said Vasil Velev.Angelov pointed out that the oil sector also remains outside the proposed measure, despite high fuel prices. According to him, the revenues from the tax package could reach 1.4 billion euros, but the expected amount is not guaranteed, as companies can change the structure of their activities or circumvent some of the requirements.
Dispute over the effect on prices and loans
Velev defended the idea of returning part of the excess profits of large retail chains to the budget. He linked his position to the pressure on producers and the impact on incomes and prices.
Angelov warned that additional taxation of banks could slow down lending to households, but did not rule out the opposite effect. According to him, the behavior of financial institutions will depend on the way the measure is drafted.
The Ministry of Finance expects the taxation to limit incentives for the formation of excess profits and influence the reduction of prices. The project provides for 90% of the tax due to be paid in advance.
The price of electricity remains a problem
The high price of electricity is the other main risk for business, Velev pointed out. According to him, enterprises that sell on international markets may limit their activities if they lose competitiveness. Companies focused on the Bulgarian market may raise prices.
Angelov said that economic growth is driven mainly by domestic consumption, while manufacturing is lagging behind. He identified services as the fastest-growing component of domestic inflation and called for more goods production.
The proposals are part of the preparation of the 2027 budget, which aims to limit the budget deficit to 3%. The tax changes are yet to be discussed and voted on before they come into force.
Sources: BNT