Bulgarians to work 35 days in 2013 just to pay VAT

Measured in earned wages, value added tax (VAT) receipts, as calculated in the current Budget, will take longest of all levies for Bulgarians to cover in 2013 – 35 full working days, according to a report from the Institute for Market Economics (IME). Government revenues from excise duties will cost Bulgarians the money equivalent of 19 workdays, social security contributions – 27 days, personal income taxes – 11 days, and corporate taxes – 7 days. It will take another 7 days to pay state and local charges and 3 more days for property taxes.

Essentially, Bulgarians will be working till the beginning of May just to pay their taxes for 2013. This year, the so-called Day of Independence from the Government, when Bulgarians will actually start working for themselves and not for the state, ironically coincides with Labour Day traditionally celebrated on May 1. In Bulgaria, the independence day normally comes at some point in May, IME said. The fact that it has come earlier than usual in the last 4 or 5 years largely reflects the strain both the crisis and the weak recovery have put on government revenues, and the resulting budget deficit. In other words, the state keeps spending at the same rate, even though revenues have fallen. Were we to go even further with these figurative calculations, during the first five days of independence, the Government will finance part of its expenditures with loans – this is the amount of the projected budget deficit for 2013. IME analysts arrive at each year's symbolic independence day by comparing consolidated budget revenues (excluding benefits) with GDP. Only official government data or projections are used.

In 2013, Bulgarians will earn an average of BGN 223 mln every calendar day, based on GDP expectations. Thus, it will take 120 days to earn the BGN 27 bn the Government has planned to collect from its citizens this year.

Прочети цялата новина

Свързани новини: