Bulgaria: Proposed tax changes could nearly double fines

Economist and MP Martin Dimitrov has warned that proposed tax amendments for 2027 include a significant increase in fines and sanctions. According to Dimitrov, the Ministry of Finance is planning to replace the term “lev” with “euro” in various laws without applying the official exchange rate of 1.95583.

This mechanical substitution would result in a nearly 100% increase for many penalties. For example, a fine for a late personal income tax declaration would rise from 500 leva to 500 euros, which is approximately 255 euros under correct conversion. Similarly, fines for incorrect declarations or employer tax withholding failures would jump from 1,000 leva to 1,000 euros.

Dimitrov noted that while sanctions for individuals might be correctly converted, sanctions for businesses would effectively double. He criticized the approach as inconsistent and lacking clear criteria, suggesting the move aims to increase budget revenue rather than address inflation.