Tax changes by Progressive Bulgaria lead to a price storm and a hard winter for families, Martin Dimitrov of Democratic Bulgaria (DB) said in the corridors of parliament today.
"The ruling parties are organising a perfect price storm this winter," Dimitrov said. He said energy is getting dearer, the deficit is huge and taxes are rising, and all of this hits every family at once.
Dimitrov thinks the government is doing too little. He said people will first feel the slower growth in their pockets, and the winter will be the hardest. His answer is faster economic growth and a smaller deficit.
Vladislav Panev of DB doubted the majority's budget plans. "I don't know how they imagine next year's budget," he said.
Panev said growth over the past five years has come entirely from consumer spending, while investment in Bulgaria is below the level needed for long, lasting growth. He expects spending to be lower next year. He also expects investment to be hit by the international situation and by a Bulgarian factor: taxes that are at least 2bn euros higher.
Panev said he regrets that the majority brushed aside the arguments against a windfall tax.
DB has tabled two bills for faster growth and a smaller deficit. The first was partly adopted: today the budget and finance committee approved changes to the Corporate Income Tax Act. These speed up tax depreciation for artificial intelligence technology, high-performance computers and server infrastructure.
The second bill would set the VAT registration threshold at 85,000 euros, while the ruling parties plan 60,000 euros. The committee will consider the DB proposal later today.