Crisis has modeled in a particular way the collection rate of different items. Tax collection falls while paying excise duties has been growing continuously over the past four years, albeit with a slower pace. This shows a comparison made by the BANKER, according to data provided by the National Revenue Agency and the Customs Office.
Ex-minister Dyankov when he stepped into office drew a bead on the NRA and promised to dismiss its then boss Krasimir Stefanov, if by the end of the first half of 2010 he failed to rise sharply the collection rate. At the same time he showed favour to the customs, The collection of excise duty on fuel is increasing on a monthly basis but we are still struggling with cigarettes. However, the general trend at customs is an upward one.
What is certain, though, is that Bulgaria collect less and less in tax revenue produced by the economy, and for the past four years the revenue side of the budget has plummeted. In 2007, the government revenues were 40% of GDP, while in 2012 this percentage had fallen to 35.4%, ie by 4.6 percentage points, according to Executive Chairman of the Bulgarian Industrial Association Danev. According to him, it was logical, since the economy grew from 60 billion levs in 2007 to 77.5 billion levs in 2012, tax revenues also to increase proportionately.
Calculations of the President of the Bulgarian Industrial Association show that as a percentage to GDP in 2012, Bulgaria collected by 3.5 billion lev less revenue compared to 2007. VAT collections fell by 1.3 billion levs. There has been also a reduction in some of the direct taxes and excise duties. The only increase came from the municipal taxes which, according to Danev, is squeezing of businesses.
Data provided by the Ministry of Finance show that in absolute amounts collected taxes for 2007-2012 showed growth, with the sole exception of profit tax, which fell from 1.7 billion levs to 1.4 billion levs over the period. VAT in 2007 brought to the budget a total of 6.6 billion levs, and in 2012 – 7.15 billion levs. If the revenues in 2012 were at the same level of 40% of GDP, however, the proceeds of the tax should have been by 1.35 billion levs more, as Danev claims.
The crisis has changed the structure of growth – from speculative investments to exports, which, however, is subject to 0% VAT.
Customs data, however, show the opposite trend. Implementation of the revenue from excise duties and VAT on imports and import duties since 2010 shows a steady growth from 6.6 billion levs three years ago to 7.9 billion levs last year. For the first quaters of the last four years, the data also demonstrate a strong and sustainable uptrend. If from January to April in 2010 the budget collected 1.7 billion levs, in 2011 – the figure was – 2.1 billion levs, and in the first quarter last year, the amount collected was 2.3 billion lev, and this year it grew to- 2.4 billion levs.
In the collection of excise duties the things for the first four months of years are as follows: in 2010 – 0.9 billion levs, in 2011 – 1.1 billion levs, for 2012 and – 1.2 billion levs, and for the first four months of this year – 1.1 billion levs. The information has been provided to the BANKER weekly from the Customs Office directly.
The BANKER
nbsp;
