MPs argued mostly over the VAT registration threshold on the second day of the first reading of the tax bills that the 2027 budget revenue depends on. The ruling party wants to raise the threshold in stages over the next three years. The opposition wants a bigger rise right away.
The staged rise is part of changes to the VAT Act. Parliament passed them at first reading on Thursday with 122 votes in favour, all from Progressive Bulgaria.
Where it began: Parliament backs higher VAT threshold at first reading, rising to €75,000 by 2029
An excise duty on home-made alcohol went through without debate, with the votes of the majority.
Democratic Bulgaria and Revival want the threshold as high as possible, but the ruling party disagrees. Democratic Bulgaria has tabled its own bill that would make VAT registration compulsory at a threshold of €85,000.
The threshold is now €60,000, said Martin Dimitrov of Democratic Bulgaria. If it stays there and the €85,000 proposal fails, the ruling party will not have backed small business, he said. "You were not brave enough to take good, strong steps to help small business grow. And this will cost us dearly in future," Dimitrov said.
Dimo Drenchev of Revival said the government first proposed a threshold of €75,000 and then backed down. He compared the ruling party to a driver who turns the wheel in only one direction. "Now we see they have pulled the handbrake," Drenchev said.
Milen Trifonov of Progressive Bulgaria replied that the ruling party is trying to balance support for small business with the interests of the treasury. Businesses not registered for VAT cannot deduct input tax, so they do not make goods 20% cheaper for the buyer, he said.
GERB-SDS oppose compulsory VAT registration for sales of new property, but the ruling party does not agree with them. Temenuzhka Petkova said GERB will not back the bill. She said the rule is a new tax burden for every family and for anyone who invests in a new property and then sells it. Petkova added that action against oligarchy is being taken on all fronts.
Trifonov said individuals who make one or two property sales in a calendar year will not have to register for VAT in advance.