The Bulgarian government announced that it will reduce the nation’s value-added tax by 1% in 2013 with a target of reaching 16% by 2015.
The government said that in order to freeze the excise duty hikes until 2015, a cut from the current 20% rate is required. Though they will not be able to allow the cut as low as 18%, but a lesser reduction would go ahead as they promised. Taxpayers are unlikely to receive advanced notice of a decision to reduce the rate; the government announced citing the depressed economic activity that would occur prior to the rate change.
To complement the nation’s already internationally-attractive corporate and personal tax regimes, with their 10% flat income tax rates, the government has confirmed plans to cut the value-added tax rate to 16% by 2015.
