Bulgaria plans one-off windfall profits tax for 2027

Bulgaria’s proposed tax on windfall profits will be a one-off measure applying only in 2027, Deputy Finance Minister Lyudmila Petkova said at a forum in Sofia on Bulgaria’s membership of the European Stability Mechanism.

Petkova said the tax would target sectors where profits are not reinvested in the Bulgarian economy but distributed as dividends to shareholders and foreign parent companies, BTA reported.

• Finance Ministry proposes 33% windfall tax on banks and major businesses

According to a Finance Ministry analysis, the sectors targeted by the measure account for more than 60% of windfall profits across the economy. In some of these sectors, profits have risen by more than 588% over six years, Petkova said.

She described the proposed tax as part of a broader European approach based on economic solidarity.

Editor: Ivo Ivanov