Bulgaria Opposes Mandatory EU Tax Harmonization, Emphasizes Tax Policy Independence

Bulgaria does not view mandatory tax measures in corporate taxation as a path to boosting competitiveness, stated Deputy Prime Minister and Finance Minister Ludmila Petkova before the Economic and Financial Affairs Council (ECOFIN) meeting in Brussels.

Petkova highlighted that Bulgaria carefully reviewed the measures proposed in the report by Mario Draghi, including tax breaks, clean energy credits, and incentives for research and development. The Finance Ministry clarified that while Bulgaria backs initiatives aimed at reducing administrative burdens, streamlining procedures, and encouraging cross-border investments, the country insists that tax policy independence is essential for fostering each member state's unique economic and social goals.

The Ministry's statement added that Bulgaria sees tax harmonization as just one possible approach to increasing EU-wide competitiveness and believes that other methods should also be explored.

At the ECOFIN gathering, members agreed on a legislative package addressing VAT in the digital age, intended to tackle VAT fraud, assist businesses, and encourage digitalization, according to the Finance Ministry's release.