Ana Mihova

- Doctor Trenchev, can you project an increase in the minimum wage this year?
- Whether there will be an increase or not is not for us to say because we are not authorised to allocate the State budget funds, although we are conscientious taxpayers. Resources are distributed by the executive power but approved by Parliament. Of course, we are not indifferent to tax rates, revenues, expenses because we are of the opinion that this extremely important process is not being conducted well. It is favourable in some way that Bulgarian tax rates are not high in comparison to those of other countries but if an attractive tax policy is to be pursued, it must be considered in advance whether the funds will suffice. Besides, it should be decided how other sources of finance can be found.

I think that, at this point, there is a serious problem because the entire idea of low taxes not to be levied, as is the case in developed Western democracies, is for Bulgaria to become attractive for investors. This was the explanation for the flat-rate income tax, the progressive reduction of contributions, etc. However, no matter how much we look around and anticipate investors, they are not coming because obviously something else is driving them away. Investors want predictability, stability, security. They wish every morning to find their cars exactly where they were parked in the evening. Investors rely on the fact that their flats will not be robbed while they are on a business trip or that an accident might happen to their wives. In order for investors to be attracted, a set of favourable terms and conditions should be provided and not only partial ones which could impede the functioning of the State.

- Do you think taxes should be raised?
- I do not support the increase in taxes because their current level has already become operative and any future increase will not be welcomed by taxpayers. However, the big question is whether there was sufficient reason for them to be lowered to such an extent and what is being done in other fields for the improvement of the investment climate. Another point is what measures have been applied recently for the collection of taxes and other necessary due payments? The vast majority of our compatriots - 1.5 million people do not pay their healthcare contributions. How can the healthcare sector register good financial results if so many people have not deposited their collateral with the healthcare system and they only use it when they need to? Unfortunately, I do not know what the concept is for the development of any other sector, for example, what are the incentives for the advancement of the education or healthcare sectors. All welcome measures were implemented and applied half-way without achieving any practical results. Including sectors such as energy intended for systems which are of vital importance and are at the basis of the economy and the functioning of society. It is only now, two years after GERB (Citizens for European Development of Bulgaria) came to power, that it is rumoured that some energy strategy will be submitted for discussion. It is not as if there was no draft strategy under discussion beforehand. I can summarise the current situation with a very old expression: “No favourable wind will steer a ship which has sailed off without a clear destination”.

- Do you believe that actions of NRA (National Revenue Agency) will lead to better collectibility of taxes and fees?
-I am afraid that part of NRA's actions have no reasonable explanation. For example, why have some companies not been not audited for years, while others are subjected to audits every two days. This makes me think that someone is trying to exert influence. I have nothing against the audits but, when these are conducted daily, they hamper the normal working process. There are a lot of ambiguities in the existing legislation, the initiatives of people are being blocked. Besides, I often hear businessmen say that things have gotten so complicated due to cumbersome regulations, procedures and rules that they simply do not allow them to operate. It is understandable that in a confused State such as ours, which is just starting to change in a democratic way as well as to change its ownership status and mentality, it is logical for a lot of written rules to exist. In old democracies, all ongoing changes are based on reliable mechanisms and they do not need exceptional regulation. However, we are very good at demanding that everything be over-regulated but, when it comes down to ourselves, we violate the rules.

- Let me return to the minimum wage ...
- We demand an increase because the greater incomes are, even if the increase is quite modest, this will affect our economy favourably. Actually, a paradox occurs. On the one hand, the Finance Minister refuses to increase incomes, at least those of civil servants and MPs, which is in fact an alarming signal for the private sector as well. It substantiated its decision with the fact that the Bulgarian State also refused to raise the salary rate. On the other hand, Djankov claimed that the consumption rate must also register an increase. How can this happen? At least under the market mechanism of modern human society, the rate of consumption depends on purchasing power. If Djankov knows other mechanisms, let him share these with us ..

- Do you think it is possible for the prices of foodstuffs and fuels to be curbed, granted that their price jump is so ostentatiously reflected in people's finances on a daily basis?
-Let us ask ourselves first why Bulgaria imports the most basic foodstuffs from everywhere, including a distant country such as China. Furthermore, there is no interest in agricultural land and the fields are abandoned.

- Do you think that the chain from producers to the commercial network needs to be shortened? For example, for intermediaries to disappear?
-This is logical but it should be of interest to producers themselves. Manufacturers must unite and not allow other people to cut their prices. This is a well-established practise in other countries. Of course, there should be a strong state ready, at the slightest alarming signal, to send police units to drive back all these lame-brained protesters. But Bulgarians have always been divided.