Finance Minister: No Tax Increases Planned as Bulgaria Targets 3% Budget Deficit for 2025

Bulgaria's Deputy Prime Minister and Finance Minister Lyudmila Petkova stated that the Ministry of Finance has developed various revenue and expenditure measures to keep next year's budget deficit within 3% of GDP on an accrual basis. Following a meeting of the National Council for Tripartite Cooperation, Petkova confirmed that there are no planned tax increases for 2025.

In response to a question from BNR regarding the draft budget, Petkova noted that extending the zero VAT rate on bread and flour and the 9% VAT for the restaurant sector could cost the treasury around 400 million leva. Some employer organizations have urged the government not to reintroduce the standard 20% VAT for these sectors, which saw reduced rates due to the COVID-19 pandemic. Petkova highlighted that preferential VAT rates not only add to the administrative burden but also introduce potential inconsistencies in taxation.

Additionally, Petkova announced plans to request convergent reports from Brussels and Frankfurt on Bulgaria's Eurozone readiness, contingent upon meeting the price stability criteria. She reiterated that the budget for 2025 would adhere to the 3% deficit target.