Cause and Effect in European Politics and Law

Industry Watch: Labour remains the most taxed deal in Bulgaria

euinside, December 22, 2009

Taxation and social securities in Bulgaria for this year were 33.6% of all expenses for labour which makes the labour trade one of the most taxed deals in Bulgaria, the estimations of Industry Watch show. For 2010 the economists of Industry Watch say that this burden would slightly diminish to 32.6% because of the plans of the government to reduce social securities rates. Thus, to give his employee a salary of 500 levs (256.41 euro) the employer makes 739 levs (378.97 euro) expenses for labour. For salaries above 2,000 levs (1,025.64 euro) the taxation and social-securities burden decreases. Only with salaries above 5,000 levs (2,564.1 euro) it falls below 20% of labour expenses, the economists have calculated.

In the meantime, the economists report the biggest contraction of import of raw materials, including oil and gas. For the past 12 months until September the import accounted for 7.3 bn euro which is 40% of the total import in Bulgaria. This means a contraction of 37% compared to the previous year. The market of long-term consumer goods is very shrunk - only for a year this type of import has dropped by some 470 mn levs (241.02 mn euro). Least affected by the crisis is the market of fast sold consumer goods, where the import increases by 8% annually, the Industry Watch reports.