ADDRESS
TO THE POLITICAL POWERS FOR
AN ECONOMIC PROSPERITY

The entrepreneurs have suffered the hardest lot of the transition in the past years and therefore we require from the candidates in the coming elections to engage themselves with a commitment to secure:

• The necessity of a much closer cooperation between the legislative and administrative institutions, taking always in consideration the standpoint of business with a view of ensuring an effective legislation and market-oriented regulations
• The necessity of a tax policy eliminating the useless administrative procedures and red tape for the free development of companies
• Harmonization of the legislation according to the EU directives and an active involvement of all non-governmental organizations connected with business.

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With this address, we confirm our commitment for the establishment of an attractive investment regime in the country as well as our willingness for a constructive cooperation.

We are convinced that the achievement of these aims calls for the signing of an Agreement with the leading political forces, which should envisage:

1. Drastic Reversal in the Fiscal Philosophy for the Development of the Country
   1. Drastic reversal in the philosophy of the fiscal policy so that a two-digit economic growth would be guaranteed, and, simultaneously with it, a growth of the budget revenues, the tax burden being not only decreased to 10% (total profit tax and municipal tax) but also a tax credit to be envisaged of at least 50% for all investments, as well as an accelerated depreciation of two years for movables and 3 years for immovables.
   2. Public control on the distribution and spending of funds collected from taxes.

2. Two-Digit Economic Growth as a Basis for our Accession to Europe
   1. Creation of fair conditions for the participation in the economy by encouraging loyal competition, which is especially important for SME-s.
   2. Elimination of the still existing monopoly and control on price formation in the service sector, especially where there is still a monopoly activity.
   3. A priority in the national economy to be the establishment of such investment conditions that would give impetus to the rapid development of SME-s.
   4. Establishment of conditions for an independent fiscal policy of the municipalities, restricting to a maximum the re-allotment function of the state.
   5. Establishment of such medium-term and long-term credit conditions that would stimulate the banks to provide credits and the companies to use them for the development of specific activities.
   6. Improvement of the operational and financial potential of the companies by a voluntary VAT registration and reducing the period for VAT credit reimbursement to a maximum of 15 days, eliminating the possibility to prolong it by referring to ongoing tax control.
   7. Simplification of the patent tax and its wide introduction for some activities without consideration of turnover.
   8. Full acknowledgment of the social payments for employees, incl. private insurance.
   9. Introduction of a family tax return.
   10. Identification of priorities for the further economic development, related to regional development, information society development, tourism, agriculture, etc.

3. Proceeding with the Legislative Reform and the Harmonization with European Law
   1. Reform in the judicial system, to guarantee a just, rapid and final settlement of corporate and commercial disputes and amicable action, which will secure a stability in the economic life
   2. Provision of equal conditions and transparency in public procurement
   3. Proceeding with the harmonization of the Bulgarian legislation with a view to stimulate free access to the global information network, electronic interchange and e-commerce.

4. Development of Science, Education, Culture, Sports and other Social Activities
   1. Provision of additional incentives for the establishment of commercial companies with innovational, software and other market activities with a view to keep Bulgarian brains in Bulgaria.
   2. Acknowledgment of all social, cultural, educational, sports and other costs - as provided by law, before their taxation, with a view to relieve the budget, to increase the involvement of commercial companies and to ensure the development of these important social activities.
   3. Establishment of conditions for training and distribution of contemporary management conditions as well as a preferential treatment of regular tax payers.

5. Counteracting Corruption and Bureaucracy
   1. Abolition of the old permit system by introducing, where control is required, registration or automatic permission regime, with a view to reduce the prerequisites for bureaucracy and corruption.
   2. Ensuring the control of all commercial companies by acknowledging the auditor's control for a fiscal one.

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Today, we have adopted the "Main Directions for the Activity of BCCI". They include the ideas of Bulgarian entrepreneurs for the further economic growth.

We address the political forces with the consciousness that if they are willing to be involved with the national interests, they have to declare their support for our requests and the time in which they can be performed.

With this message, we would like to lay the foundations of the Public Compact in our relations.

Sofia, 28 May 2001

Delegates of the Extraordinary
General Assembly of BCCI