There is no pilot in the plane and there is no overall concept. This is how the MP from “Democratic Bulgaria“ Martin Dimitrov defined the revenue measures and tax changes proposed by the Ministry of Finance for the 2027 budget in the program “From the Day“. According to him, the proposals are unrelated to each other and there is no general plan to reduce the budget deficit and accelerate economic growth. Dimitrov made similar criticism in his public appearances on the topic.
“I have the feeling that these people, upon hearing an idea from somewhere, propose it without an overall concept. There is no pilot in the plane and no overall concept.“
Dimitrov said that the main priority for “Democratic Bulgaria“ is to reduce the budget deficit to below 2%. According to him, the high deficit leads to greater state indebtedness, increased demand in the economy and additional pressure on prices.
“By making a 5.7% budget deficit, as large as it has not been in 20 or more years, this means that you are taking on a huge debt - over 10 billion euros, pouring it into the economy, which increases demand and automatically raises prices.“
He pointed out that limiting the deficit is one of the party's big battles next year.
“This should be an exceptional priority for 2027. This is what we have been saying since “Democratic Bulgaria“ - a deficit below 2%. And we are ready to consider complex measures in this direction.“
According to Dimitrov, the conversation about higher salaries and pensions inevitably goes through accelerating economic growth. The State Budget proposes a phased introduction of a zero rate for reinvested profits. According to Dimitrov, the measure would encourage companies to invest in new equipment and technologies and increase productivity.
“This is a very interesting bill for a phased introduction of a zero rate for reinvested profits, in order to have more investments, new machines, higher labor productivity and to increase incomes. Because that's what the people want.“
Dimitrov described as a positive step the proposal to increase the threshold for mandatory VAT registration to 75 thousand euros, but stated that the State Budget will insist on a higher threshold - 85 thousand euros.
„We want an 85 thousand euro threshold for mandatory VAT registration. It will become 75 thousand euros. We consider this as our success and a common success. And an important step for Bulgaria. But this is only one step. Many steps are needed.“
The current proposals for tax changes provide for the threshold to be increased to 75 thousand euros, while the State Budget insists on 85 thousand euros. Dimitrov also commented on the idea of accelerated tax depreciation of investments in technologies, including those related to artificial intelligence. According to him, the idea itself can be useful, but its scope is too limited.
„They are not well outlined. I will give you an example. Accelerated depreciation is for a very narrow range of assets. We have written an entire bill and provided it to them specifically for accelerated depreciation for machinery, equipment, software and so on.“
In his words, „Democratic Bulgaria“ proposes a broader approach that would encompass more investments. Dimitrov also criticized the proposal for a tax on excess profits. He asked why the scope of the measure does not include the sectors for which, in his opinion, the European model was originally created. Dimitrov also pointed to gambling as a sector that, in his opinion, should be considered in the context of revenue measures.
„And, for example, they do not include gambling. That is, oil is not included in the scope of excess profits, first of all. And secondly, there is no gambling.“
According to him, there is a lack of specifics about the expected financial effect of the individual measures.
„One of the very important things in the tax laws is that there is no specific description of what revenue is expected from a given measure. That is, this is not well-written, in practice it does not exist.“
The proposals for the 2027 budget include a 33% tax on certain excess profits, with banks, insurers, telecommunications companies and other companies among the affected sectors. Another topic in the interview was the decision to abolish the restriction on the export of diesel and jet fuel. Dimitrov warned that in his opinion this creates a risk of additional pressure on fuel prices.
„They are lifting this ban without serious analysis. And today they say, which unfortunately is a measure towards increasing fuel prices.“
According to him, a distinction must be made between international factors over which Bulgaria has no control, and internal factors that can be influenced through state policy.
„The international fuel crisis is raising fuel prices and we cannot influence this. But we can influence Bulgarian factors.“
As one of these factors, he pointed out the budget deficit. According to Dimitrov, higher taxation of gambling could be part of the measures to limit the deficit. He recalled that the State Budget had proposed similar measures during the discussion of the previous budget.
„This is one of the measures that must be adopted. And yes, there is room for higher taxes and there is also room for excess profits.“
On the subject, he emphasized that he does not propose raising the main taxes in the country. Dimitrov outlined two main areas on which „Democratic Bulgaria“ will emphasize - reducing the budget deficit and measures for economic growth.
„The first, as it became clear - limiting the deficit below 2%. And measures for growth.“
According to him, it is precisely higher economic growth that is the necessary condition for a permanent increase in income.
„This is a very interesting bill for the phased introduction of a zero rate on reinvested profits, in order to have more investments, new machines, higher labor productivity and to grow incomes.“
The proposals for tax changes and revenue measures for the 2027 budget have provoked reactions from several parliamentary formations. Among the topics discussed are the tax on excess profits, the update of property tax assessments, changes in gambling and tax breaks for families with children.