site.btaBulgarian Industrial Association Submits Its Opinions on Draft Budgets to Parliament

The Bulgarian Industrial Association (BIA) announced Monday that it had submitted its opinions on the draft 2026 State Budget, the Public Social Insurance Budget Bill, and the National Health Insurance Fund Budget Bill to the National Assembly. According to the Parliament's website, the three bills will be discussed at a meeting of the Parliamentary Budget and Finance Committee scheduled for December 18. BIA confirms its previously expressed positions on the three bills.

The Association insists on maintaining the tax and social security model, as well as the levels of direct and indirect taxes for businesses and citizens in accordance with the State Budget Act. According to them, this will ensure greater predictability for Bulgarian enterprises, higher budget revenue collection, and preservation of the purchasing power of workers' incomes. BIA strongly opposes the proposed increase in the dividend tax rate from 5% to 10% and the proposed amendments to the Value Added Tax Act that require traders using sales management software in commercial establishments to use only software included in the National Revenue Agency's public register. BIA demands that the amendments be withdrawn. BIA also objects to the proposal to introduce mandatory GPS/mobile tracking of goods with high fiscal risk and proposes considering integration between the existing toll infrastructure and the National Revenue Agency and Customs Agency systems.

The Association objects to increasing personnel costs for all public administrations without setting criteria.

BIA supports food voucher operators' request that the 2026 food voucher quota be at least EUR 920 million (BGN 1.8 billion) to meet the needs of thousands of employers and over 835,000 workers nationwide. BIA reaffirms its support for the proposed cost optimization measures expressed in the Association of Bulgarian Employers' Organizations' (AOBR) opinion.

BIA does not support the following amendments to the Public Social Insurance Budget Bill: an increase in the country's minimum wage to EUR 620,20, effective January 1, 2026; an increase in the social security contribution by 2%, effective January 1, 2026, and by 1%, effective January 1, 2028; an increase in the maximum social security income from EUR 2,352 (BGN 4,600 — an increase of 11.3%); or maintaining the maximum amount of one or more pensions received at EUR 1,738.40 (BGN 3,400).

BIA also said their disagreements with the National Health Insurance Fund Budget Bill. BIA opposes the proposal to allocate targeted funds from the state budget to increase staff salaries in medical establishments, as outlined in Article 80b of the Medical Establishments Act. BIA also opposes the idea that the National Health Insurance Fund and the Bulgarian Medical Association should negotiate the distribution of funds related to remuneration. BIA proposes that the Ministry of Health and its structures organize and carry out any increase in basic salaries. BIA also proposes that minimum wage levels not be fixed by law, but rather that the Ministry of Health and medical institutions be given the opportunity to negotiate increases in the wage fund according to the financial situation of each institution.

Earlier in November, the government approved draft laws related to the 2026 budget, as agreed upon by the supporting parties, without coordination in the National Council for Tripartite Cooperation (NCTC). The extraordinary meeting of the social partners on the budget, scheduled for November 13, was cancelled after employers refused to participate in budget discussions in the NCTC once again. On November 5, employers also refused to attend the tripartite meeting at which the three draft budgets were to be discussed.

The full text of BIA's opinion is published on the Association’s website.