BSP To Keep Flat Tax, Introduce "Rich People Tax"

BSP has given up on its idea of abolishing the flat tax. However, a "rich people tax" has to be introduced. A 20% tax will have to be paid by people with monthly income of above BGN 10,000 from wages and rent, or people with an annual income of over BGN 120,000.

The flat tax will remain for 95% of the population, explained Dragomir Stoynev after a meeting of the Executive Bureau of BSP which debated the pre-election platform of the Socialists.

The "rich people" tax will be paid by about 7,000 Bulgarians, estimated the Socialists.

"One has to have priorities; de facto we are again proposing a differentiated tax rate," explained Stoynev when answering the question why BSP is giving up on its initial idea of a progressive income tax.