Bulgaria Opposes Introduction of New Taxes Across the EU

Bulgaria won’t back a European Commission plan to introduce a new value-added tax and a levy on financial transactions across the 27-nation bloc because “it will impose an extra burden” on people and businesses.

Bulgaria has outlined its position on a European Union plan to achieve stronger economic-policy coordination that will help fight the debt crisis and ensure stability in the euro area, the Finance Ministry in Sofia said today.

“Bulgaria doesn’t support the introduction of new taxes because it will impose an extra burden on EU citizens and companies,”it said in an e-mailed statement. “The introduction of the Financial Transactions Tax on an EU level, before reaching an agreement to introduce it on a global level, will endanger the competitiveness of financial centers in the EU.”

Bulgaria, the EU’s poorest country in terms of economic output per capita, weathered the global crisis without borrowing from international lenders. The country has the lowest personal and corporate income tax rate in the bloc, at 10 percent, to curb tax evasion, attract investment and boost growth.

Bulgaria will support a plan to increase EU subsidies by 5 percent for 2014-2020, the ministry said.

To contact the reporter on this story: Elizabeth Konstantinova in Sofia at ekonstantino@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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