Add news
March 2010
April 2010
May 2010June 2010July 2010
August 2010
September 2010October 2010
November 2010
December 2010
January 2011
February 2011March 2011April 2011May 2011June 2011July 2011August 2011September 2011October 2011November 2011December 2011January 2012February 2012March 2012April 2012May 2012June 2012July 2012August 2012September 2012October 2012November 2012December 2012January 2013February 2013March 2013April 2013May 2013June 2013July 2013August 2013September 2013October 2013November 2013December 2013January 2014February 2014March 2014April 2014May 2014June 2014July 2014August 2014September 2014October 2014November 2014December 2014January 2015February 2015March 2015April 2015May 2015June 2015July 2015August 2015September 2015October 2015November 2015December 2015January 2016February 2016March 2016April 2016May 2016June 2016July 2016August 2016September 2016October 2016November 2016December 2016January 2017February 2017March 2017April 2017May 2017June 2017July 2017August 2017September 2017October 2017November 2017December 2017January 2018February 2018March 2018April 2018May 2018June 2018July 2018August 2018September 2018October 2018November 2018December 2018January 2019February 2019March 2019April 2019May 2019June 2019July 2019August 2019September 2019October 2019November 2019December 2019January 2020February 2020March 2020April 2020May 2020June 2020July 2020August 2020September 2020October 2020November 2020December 2020January 2021
News Every Day |

Bulgarians’ Tax Freedom Day Falls on May 20 in 2021

Bulgarians will work for the State for nearly 140 days in 2021, and the tax freedom day will not come until the end of May.

This year it falls on May 20, which is the latest date for tax freedom in more than 10 years. Traditionally, Tax Freedom Day is calculated by the Institute for Market Economics.

In 2020 tax freedom day was on May 15, and in 2019 - 18 May.

Despite the severe blow to the pandemic, consolidated revenues in the budget are expected to reach BGN 47.6 billion next year. The budgeted amount of the country's gross domestic product (GDP) this year is BGN 124.5 billion, i.e. on average for one calendar day the Bulgarians will make BGN 341 million each.

Assuming that everything made since the beginning of the year goes to the state Treasury, it will take 140 days to fill it - that means Tax Freedom Day in 2021 falls on May 20.

The pandemic has dealt its blow to the budget. Redistribution has increased, with consolidated revenues expected to reach 38.2% of the country's GDP in 2021. After recovering from the previous crisis, during a long period - from 2013 to 2018 - budget revenues were within about 35-36% of GDP.

The increase now shows that the role of the state in the economic life of the country is growing. This is confirmed by the other big change, namely the significantly higher public spending and the associated large deficit, which is expected to reach BGN 4.9 billion in 2021.

Only the abovementioned BGN 4.9 billion are equal to 14 working-off days. These are the extra days when the economy would only work for the budget if it had to cover the planned deficit. We call them work-off days, because the deficit ultimately always weighs on taxpayers.

The latter receive help from European citizens, with nearly BGN 4 billion in aid provided for in the budget. Transfers from the EU will in practice save us nearly 12 days of work for the state budget. The official date of tax freedom - 20 May 2021 , includes all revenues, including the "contribution" of European taxpayers.

The greatest burden traditionally falls on working Bulgarians. The day of tax freedom for workers comes later, as they also bear the burden of income taxation, including the replenishment of social security funds.

It is interesting to note that despite the unprecedented collapse of economic activity in the first half of the past year, working Bulgarians have paid more taxes to the Treasury in 2020 compared to 2019.

Despite some measures meant to alleviate the tax burden – for example, the lower VAT rate on certain goods or temporary rebates for some local taxes and fees, in general the Bulgarian taxpayer will pay more taxes in 2021 as well.

Meanwhile, experts of the Institute for Market Economics also propose that every citizen and taxpayer calculate their Personal Tax Freedom Day on the special page "My Taxes" -

Read also

The YouCoup: How the attack on the US Capitol resembles narcissistic terrorism

Son, 30, charged with murdering dad as three relatives found unconscious near bottles of mystery liquid

Pro-Trump heavy metal guitarist reportedly identified as Capitol rioter

News, articles, comments, with a minute-by-minute update, now on — latest news 24/7. You can add your news instantly now — here