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Budget 2013: The more the state spends, the more corruption there will be







 

At the request of the Bulgarian Socialist Party (BSP), at BCCI a meeting was held of the nationally recognized employers’ organizations dedicated the issues and policies in the Draft Budget 2013. The Deputy Chair of BSP Evgheni Uzunov, MP and Former Minister of Finance Plamen Oresharski and Yordan Stoykov – member of the Executive Council of the Party were guests at the meeting. “The Draft Budget 2013 is relatively well-balanced, but there is a risk not to meet the requirements of its revenue part may and therefore it gets 4 negative assessments”, Mr. Oresharski commented. 
 
On behalf of the employers’ organizations the President of Bulgarian Industrial Capital Association (BICA) Vasil Velev said that there is a risk not to meet the budget parameters at this level of collection. Opinions were also delivered by Kamen Kolev, Deputy President of the Bulgarian Industrial Association (BIA) and Rumiana Georgieva, Parliamentary Secretary of the Confederation of Employers and Industrialists in Bulgaria (CEIBG).
 
The President of the Bulgarian Chamber of Commerce and Industry (BCCI) Tsvetan Simeonov spoke in favour of preserving the flat tax because the benefits outweigh the disadvantages. Mr. Velev added that the problems that must be solved are the increase of the minimum wage, which BCCI also does not support, the disability pensions, and the payment of the first three day of sickness benefits by the employers which out of a temporary measure as first intended has turned out to be a permanent solution. 
 
Tsvetan Simeonov said that BCCI supports a balanced budget and maintaining the tax rates, with the exception of the tax for sole proprietors and the tax on dividends. The administration remains a major a problem and if the quality of services provided to the business improves, it will positively affect the business climate and will help overcome the crisis. Another complication which “stops” the business is the fact that certain regions are practically discriminated against because of cuts in the tax administration. Such is the case with Montana Region which is now served by the tax administration in Veliko Tarnovo Region. 
 
The intention to start providing electronic services to companies alongside implementing eGovernment was considered a positive move, but not by distributing only 5000 thousand active cards because companies are more. Mr. Simeonov reminded that the fees for the provided services should only cover the expenses made for servicing the business. The proportion of the social security contributions should be evenly divided between employees and employers. As far as healthcare is concerned, the President of BCCI said that there are world standards which work successfully in other countries and therefore can also be implemented in Bulgaria on the model of GS1 Bulgaria Council with BCCI. 
 

05.11.2012

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