The National Assembly is set to discuss a package of amendments to the tax laws after the parliamentary Budget and Finance Committee approved it at first reading. The proposals are related to the revenue side of the 2027 budget and include new taxation for certain companies, higher tax allowances for families with children and changes to food vouchers.
The committee backed the introduction of a one-off 33% tax on excess profits. The measure covers selected sectors, including banking, insurance, telecommunications and food retail. Deputy Finance Minister Lyudmila Petkova said that “the positive budgetary effect of the measure is estimated at €800 million”.
The proposal met with opposition resistance. Vladislav Goranov of GERB described the measure as a one-off source of revenue, while representatives of “Democratic Bulgaria” and “We Continue the Change” raised questions about how the tax would be calculated and the absence of the energy sector. According to BNT, all opposition formations except “Revival” voted against this part of the package.
Higher child tax allowances
One of the proposals is to permanently enshrine child tax allowances in the Personal Income Tax Act, rather than having their amounts determined annually by the budget law. For one child, the allowance will increase to €5,000, for two children to €10,000, and for three or more children to €15,000. An allowance of €12,000 is envisaged for a child with a disability.
A new allowance of up to €2,000 per child is also proposed for actual expenses on healthcare, educational and sports activities. The option of using the allowances in advance through an employer will be retained. According to the Finance Ministry, the increase in the allowances will reduce budget revenues by €137.5 million.
Changes to vouchers, property and cars
The package envisages increasing the maximum monthly amount of food vouchers from €102 to €200. Amounts exceeding €102 will be taxed at 7%. Deputy Minister Lyudmila Petkova said that the annual voucher quota would be increased from €818 million to €1.5 billion.
Other measures include a gradual increase in the VAT registration threshold and an update of the tax valuations of real estate. An excise duty is also proposed for cars with an output of more than 250 kilowatts, or approximately 340 horsepower. Meanwhile, the Council of Ministers has abandoned its initial idea of imposing an excise duty on electric cars, BNT reported.
All the proposals have been adopted only at first reading by the Budget Committee. They are now to be placed on the agenda for discussion in the plenary hall, where lawmakers may amend them between the two votes. Their final effect will depend on the adoption and promulgation of the bills.
Sources: bntnews.bg, btvnovinite.bg