Bulgaria moves to flat tax.

As one of the lastest in the Black Sea region Bulgaria is after Russia, Ukraine, Georgia and Romania moving to the flat tax, introducing it on the lowest level in the World – to 10 percent. Ruling socialist-lead coalition has soon adopted ta plan and it is now under discussion in Parliament with other legislation connected with 2008 budget. This bold move is following last years radical tax cut, when Bulgaria slashed its corporate income tax to flat 10 percent. IMF issued its usual warnings, that such cuts are very bad as they threaten the balance of budget. Results of first year low corporate tax had proved opposite – earnings from it have been  more as 40 higher  as predicted.  This has encouraged  to  do the same with personal income tax.  Bulgarias example proves  once again, tax low taxes boost economic growth and hit hardly informal or grey sector.  Meeting with the Prime Minister Stanishev I encouraged him to continue on the radical way of reforms, boosting so Bulgarias growth and recovery. It was good to see, that on the flat tax, the Prime Minister did not needed actually encouragement – he has made its decision and keeps it. So we can wish all the best.