Tripartite Council Backs Proposed Tax Law Changes for 2027

Bulgaria’s National Council for Tripartite Cooperation (NCTC) supported the proposed amendments to the country’s tax laws at its meeting on Friday. Based on the positions expressed and written submissions from each organization, the council supported draft amendments to all eight laws, with editorial comments concerning the Gambling Act and the Corporate Income Tax Act provisions on excess profits, Finance Minister Galab Donev said after presenting the positions of trade unions and employer organizations on the individual proposals.
Deputy Finance Minister Lyudmila Petkova, who presented the proposed changes, argued the package of tax measures for 2027 was aimed at ensuring sustainable growth in budget revenues, including by curbing the shadow economy, combating tax fraud and evasion, and improving revenue collection. She noted that, alongside measures to strengthen public finances, the package included several incentives for businesses and households, as well as steps to reduce the administrative burden.
Among the new proposals, Petkova highlighted a phased increase in the VAT registration threshold. Instead of the initially proposed increase to EUR 75,000, the threshold would rise to EUR 60,000 from January 1, 2027, to EUR 70,000 from January 1, 2028, and to EUR 75,000 from January 1, 2029. She said the European Commission and the International Monetary Fund had recommended a gradual increase rather than such a sharp adjustment.
Regarding the proposed excise duty on cars with engine power exceeding 250 kilowatts, Petkova explained that, for hybrid vehicles, only the output of the internal combustion engine would be taken into account. Specialized vehicles, ambulances, fire engines, vehicles operating under special traffic rules and electric cars would be exempt.
Petkova also said that, following information received during the public consultation about the abuse of nicotine content in electronic cigarettes, the Excise Duties and Tax Warehouses Act would likely include provisions to tighten controls and prevent products that do not meet legal requirements from being sold, alongside stricter customs checks.
Positions of trade unions and employers
Plamen Dimitrov, president of the Confederation of Independent Trade Unions in Bulgaria (CITUB), said the union broadly supported the package but had reservations about taxing food vouchers and the proposed property tax valuations. He considered the excess profits tax likely to have the most significant fiscal impact and called for reconsideration of the proposals affecting people who own only one home.
Atanas Katsarchev, chief economist of the Podkrepa Labour Confederation, called for a long-term tax policy based on fairness, neutrality and reducing inequality. He supported tax relief for families with children but said low-income households might be unable to benefit from certain child-development measures. He also proposed progressive taxation to offset the low minimum wage and suggested replacing the planned 7% tax on food vouchers with a social security contribution.
Employer organizations raised concerns about the proposed excess profits tax, particularly its calculation method and a new control indicator that they said could disadvantage some companies and encourage price increases. The Bulgarian Industrial Capital Association also objected to the treatment of newly established companies and called for a more transparent approach to penalties, arguing that converting fines from leva into euros could amount to an increase of about 95.58%.
The Bulgarian Industrial Association supported the proposed tax relief for children and child-related health, education and sports expenses, as well as the phased increase in the VAT registration threshold. It also backed raising the monthly food voucher limit to EUR 200, while expressing reservations about taxing amounts above EUR 102.26 and about the proposed excess profits tax mechanism.
The Bulgarian Chamber of Commerce and Industry supported tax relief for children and food vouchers, as well as the updating of property tax valuations. It called for an end to repeated delays in implementing the “polluter pays” principle for household waste fees, while questioning the proposed increases in fines.
The Confederation of Employers and Industrialists in Bulgaria expressed concerns about the proposed Gambling Act amendments, particularly provisions affecting land-based gambling operators. It warned that requirements beyond operators’ control could lead to legal disputes and future costs for the state, while saying that greater precision was needed in the rules imposed on businesses.

Tripartite Council Backs Proposed Tax Law Changes for 2027 THE NEWS FROM BULGARIA – NEWS AGENCY 2009-2025 2026-10-23 11:38:25

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