site.btaThink Tank Sets 2025 Tax Freedom Day at June 3

The Institute for Market Economy (IME) has estimated that the day in 2025 when Bulgarians, figuratively speaking, stop working for the government and start working for themselves, is June 3. This day is called Tax Freedom Day.

According to IPE's calculations, in 2025 Bulgarians needed to work nearly 154 days only to pay their taxes and fees to the Government, thus reaching the budget revenue target for the year.

"The 2025 budget plans consolidated revenues of BGN 90.3 billion. Considering that the daily GDP approximates BGN 590 million (based on a projected annual GDP of BGN 215 billion), it takes Bulgarians nearly 154 days to fill the public purse. Tax Freedom Days comes a record late in 2025 as a result of the budget expansion and the higher levels of redistribution: from revenues amounting to 35-37% of GDP in recent years to 41.9% of GDP projected in the 2025 budget," the think tank said in a press release on Monday.

"This year's budget is undoubtedly supposed to focus on the expenditure side. Parliament voted consolidated expenditures amounting to BGN 96.7 billion, up bg over BGN 18 billion from 2024. Total expenditures are expected to reach 44.9% of GDP - an unprecedented proportion for the last two decades. The budget deficit is planned at BGN 6.4 billion, but largely depends on meeting the overambitious target of VAT revenues. The build-up of budget deficit in the medum term also leads to an increase in the public debt, and for 2025 alone the budget plans incurring new debt of nearly BGN 19 billion," the Institute recalls. 

The Tax Freedom Day set by IPI was May 13 in 2024, May 26 in 2022, and May 20 in 2021.