BCCI presented its position on the State Budget 2013 at an extraordinary meeting of the NCTC

BCCI has no objections to the amendments and supplements to the tax laws and has submitted the following position-papers regarding the various bills:

Regarding the Draft-bill amending and supplementing the Value Added Tax Act: BCCI supports the proposed amendments and additions aimed at harmonizing the act with EU regulations; it supports the proposed concessions for taxpayers, the editorial improvements, as well as preserving the VAT rate.

Regarding the amendments to the Tax and Social Insurance Procedure Code - § 41 of the Transitional and Final Provisions of the Draft-bill amending and supplementing the Value Added Tax Act: In principle, BCCI supports the Draft-bill in this part because it simplifies the regime for declaring and paying the taxes.

Regarding the amendments to the Corporate Income Tax Act - § 43 of the Transitional and Final Provisions of the Draft-bill amending and supplementing the Value Added Tax Act: BCCI supports the Draft-bill in the part which simplifies the regime for declaring and paying the tax, as well as preserving the tax rate.

Regarding the amendments to the Income Taxes on Natural Persons Act - § 48 of the Transitional and Final Provisions of the Draft-bill amending and supplementing the Value Added Tax Act: BCCI supports the Draft-bill in the part which simplifies the regime for declaring and paying the tax, as well as preserving the tax rate.

BCCI’s appraisal regarding the feasibility of the budget is that the budget is realizable with the proposed parameters and having in mind the current economic situation. The budget relies mainly on higher domestic consumption which will bring about more revenues from excise duty and VAT. The main risks which may cause for the budget not to be realized in its revenue part are related to the decrease of investments and exports, as a result of deterioration of the economic situation in Europe.

Regarding the Draft Decree of the Council of Ministers determining the size of the minimum wage in the country for 2013, BCCI’s position is that after the last two increases of the minimum wage, according to data of the National Statistical Institute, the number of unemployed grew by 67 000 people (from 343 000 in Q2 of 2011 to 410 000 in Q2 of 2012). Raising the minimum wage in 2013 will pose additional burden on business, therefore measures will have to be taken to make up for it.

Regarding the Draft Decree of the Council of Ministers updating the poverty line for the country in 2013, BCCI supports the project as far as the poverty line has been determined following the adopted methodology.

Meanwhile, BCCI proposes to modify the methodology in terms of “separation” of the poverty line from the minimum wage, because the latter is not a form of social benefit, but compensation for work done (even though low-qualified work).

BCCI supports in principal the Draft-bill on the Public Social Insurance Budget but with some objections and comments.