Bulgarian big business relieved of tax burden
A new report by the environmental association Za Zemiata / FoE Bulgaria finds that the top ten biggest companies are responsible for 6.3 percent of the total business turnover in Bulgaria but contribute only 2.6 percent to the corporate tax revenues.
The top ten biggest private companies in Bulgaria, many of which profit from polluting industries such as fossil fuel extraction and distribution and non-ferrous metals. Enterprises of the scale of Aurubis Bulgaria, Lukoil Neftohim Burgas, Lukoil Bulgaria, pay only 2.6% of corporate taxes but account for 6.3% of non-financial sector revenues.
The conclusions are from a report by the Environmental Association Za Zemiata / FoE Bulgaria, authored by financial journalist Dimitar Sabev and co-author Iva Dimitrova member of the Economic Justice team of the organization. The document uses entirely public information and examines the corporate taxes of the ten largest private enterprises in Bulgaria. The data shows that the ratio of tax to revenues averaged 0.34% for 2020 and 0.37% for the previous year. In other words, the state collected BGN 3 or 4 out of every BGN 1,000 circulating in the largest companies’ business.
"The biggest companies in Bulgaria are far not the biggest taxpayers and it is evident that the greater tax burden remains for smaller enterprises to bear. Corporate taxes play a very modest role in providing tax revenue in Bulgaria. Main contributors to the budget are the individuals: firstly through their income taxes, and secondly via the massive indirect, 'invisible' taxes responsible for over 50 percent of the total tax revenues of the country – an indicator where Bulgaria is undisputed European champion”, comments Dimitar Sabev, financial journalist and report author.