Calls For Resignations Over New Tax in Bulgaria

October 16, 2012 Taxation in Bulgaria

Simeon DjankovSOFIA – The Finance Minister of Bulgaria is under fire, as claims rise that he intentionally did not reveal the government’s plan to impose new taxes.

On October 15th the Bulgarian Confederation of Labour Podkrepa issued a statement calling for the resignation of the country’s Minister of Finance Simeon Djankov, alleging that he broke several established codes of practice by not disclosing the government’s intention to implement a 10 percent tax on interest earned from bank deposits.

According to Podkrepa, during a meeting of the Three-Way Council between the government, labor unions and representatives of businesses on October 8th, the Minister made no mention of the tax and gave no indication that the Cabinet would consider the tax in the near future.

Despite the lack of information or discussion at the meeting regarding the tax, the measure was was approved the following day by Cabinet.

The Confederation claims that Bulgarian legislation requires that the consultation be held with the Three-Way Council before any changes such as the tax are approved or implemented.

Podkrepa is now calling for the government to publicly release the notes and transcripts from the meeting on October 8th, as evidence that the Minister knowingly broke sections of the national Labour Code in relation to cooperation and discussion between the government and the Council.

Photo by veni markovski