site.btaBulgarian Romanian Chamber of Commerce: Pension Contribution Increase Will Worsen Business Competitiveness

The planned increase of the pension contribution by two percentage points in the draft budget for 2026 will reduce the competitiveness of Bulgarian businesses, especially in the manufacturing and export-oriented sectors, the Bulgarian-Romanian Chamber of Commerce said in a statement on Monday.

According to the organization, the proposed increase in the dividend tax from 5% to 10% poses a serious risk to the investment climate and entrepreneurship, as it will raise the administrative and tax burden on small and medium-sized enterprises. Doubling the dividend tax during a period of economic uncertainty will send a negative signal to foreign investors, including Romanian businesses, which in recent years have expanded their presence in Bulgaria, the Chamber notes.

The statement says that despite the high level of public spending planned in the draft budget, there is a lack of concrete structural reforms in key areas such as the pension system, healthcare, the judiciary, and investment conditions. Increasing spending without reforms carries the risk of inflationary pressure, which could limit the purchasing power of the populations.

The Bulgarian-Romanian Chamber of Commerce says that it cannot support a budget that risks reducing business competitiveness, weakening people’s incomes, and contributing to social instability.