PM promises no tax increases

"The tax and social security burden will not increase." Prime Minister Rosen Zhelyazkov made this statement to journalists in Burgas, refuting rumors about an upcoming increase in VAT and other taxes.

"If the government intended to increase the tax and social security burden, it would have clearly and categorically stated so through cabinet acts, official communications, proposals to the legislature, and finally, next year's budget law," Zhelyazkov emphasized. According to Zhelyazkov, the government will continue to work toward financial discipline and a balanced budget.

• Nearly a quarter of Bulgaria's economy is in the grey sector
• Podkrepa trade union warns of a growing budget deficit

However, Simeon Dyankov, the chairman of the Fiscal Council and former finance minister, suggested considering an increase in VAT and some other taxes to cover the budget deficit in an interview with the independent news agency BGNES yesterday. Other experts also predict tax increases.