Bulgarian Chamber of Commerce warns of nearly 96% tax penalty increase

The Bulgarian Chamber of Commerce (BCC) has raised alarms regarding proposed government changes to tax laws that could result in a significant increase in financial penalties. According to BCC Vice President Stanislav Popdonchev, certain sanctions are set to undergo a formal currency conversion where the numerical value remains the same, but the denomination changes from Bulgarian lev to euro.

Because of the fixed exchange rate, this transition would effectively increase the size of these fines by approximately 96%. For instance, a fine of 1,000 levs would become 1,000 euros, which is equivalent to 1,955.83 levs. The BCC argues that this is a hidden and drastic jump that will disproportionately burden businesses, particularly small and medium-sized enterprises.

The Ministry of Finance has presented a package of changes affecting seven tax laws as part of Bulgaria's preparations for Eurozone accession. While the Ministry claims an analysis has been conducted, the BCC maintains that no such analysis has been made public or shared with business representatives. The Chamber is calling for greater transparency, economic logic, and a thorough impact assessment to ensure the competitiveness of the Bulgarian economy.