Cutting off unnecessary sections in the public administration is the fastest and surest anti-crisis measure, according to the BCCI

A discussion of the measures in the fiscal sphere was held at the BCCI, with participation of the Board of Administration , representatives of members of the Chamber, experts. Based on the results of an Inquiry Study in respect of the Government’s intentions to change tax rates as an anti-crisis measure, the following findings were presented:

The question of a possible VAT increase is of key importance for the economy , because the VAT brings 40 % of the budget incomes, but the cash effect of such measure would be expressly negative for the overall face of the economy and the image of Bulgaria as a tax paradise in the EU and the region.

A positive effect on the budget realization will come from another direction – a reduction in its expenditure part .

The BCCI members and management want a change in the legislation that would permit the companies to faster go through the process of leaving the market and declaring insolvency, because the procedure continues to be a long one.

The business believes that punishment should be imposed not only on civil servants reported to have violated the rules in the Eurofunds assimilation , but also on such that are inactive and because of their inaction the money is not utilized in time.

Accession to the Eurozone continues to be a goal for the Bulgarian business, emphasized BCCI representatives .

Cutting off unnecessary units in the public administration is the fastest and surest anti-crisis measure.

By statistical data, 7.4 billion BGN is the expenditure for public administration in 2008, 6.8 billion BGN in 2009 , 8 billion BGN for this year, said at a press conference BCCI President Tsvetan Simeonov and asked when will the promised reduction in the public sector be done.

The employers’ opinion is that an eventual increase in VAT will narrow the collectability and consumption base . Part of the companies will enter the gray sector, which will lead to non-payment of taxes and insurances.

The BCCI again recalled that it is imperious for the state to pay off on public procurement carried out.

The companies bring forward their demand which is fully legitimate – to receive in full amount their dues.

Many companies complained that they actually do the job of the administration’s employees. It is also implausible that while labor productivity in the administration is decreasing, their salaries should be raised.