site.btaBulgaria Reports 15% Increase in Tax Collection, PM Says

Bulgaria has recorded a 15% increase in tax collection, Prime Minister Rosen Zhelyazkov said in his address to participants at the Annual Meeting of Local Authorities in the Albena resort (on the Black Sea) on Sunday.

“Regarding other types of revenue, we still have some reserves - which lie with you,” he told the local government representatives. “We are discussing this issue with many of you. There are around BGN 1 billion in uncollected local taxes and fees, primarily related to property taxes, vehicle transactions, and motor vehicle taxes. Even under current regulations, there is a possibility to recover this - if not entirely, then at least partially,” the Prime Minister added.

In addition, the implementation of the municipal program currently stands at BGN 460 million, with BGN 290 million remaining for the current year, according to projections. Once these funds are exhausted, implementation will continue under Annex 3, using resources capitalized through the Bulgarian Development Bank. This will also be the main model for 2026, Zhelyazkov noted.

The Prime Minister called on local authorities to pay special attention to projects under operational programs and to take full advantage of the available opportunities.

“The budget procedure is currently underway. At this moment, there are 2,200 ad hoc agreements totaling more than BGN 3 billion. Our joint task is to ensure that this resource is fully utilized by 2027,” the Prime Minister explained.

Regarding the Recovery and Resilience Plan, Zhelyazkov noted visible efforts that have been made: “We are expecting the second payment, as communicated by the Commission, as well as the third payment, which is significant for the current year,” he said.

Only 71 municipalities have declared their readiness to introduce the "polluter pays" principle, said Zhelyazkov. The Prime Minister recalled that with the changes in the Penal Code, the disposal of household, industrial, and construction waste will be criminalized. "There must be prevention, and that prevention is criminal liability," Zhelyazkov added.

"I fully share the view of the Association of Municipalities that only synergy between the central, territorial executive power and local authorities can yield good results for our society," the Prime Minister said.