The Confederation of Independent Trade Unions in Bulgaria (CITUB) is demanding the introduction of an income-tax-free threshold equal to the minimum salary, declared CITUB President Plamen Dimitrov at a forum dedicated to tax reforms.

The CITUB is also proposing a 15/15/15 scheme – a universal 15% VAT rate, 15% income tax for legal entities, and 15% for natural persons. The Confederation says that the tax system now in place increases inequality and does not create a sense of justice in society.

“The inequality (Gini) coefficient is over 40%, the highest level in the EU,” said Plamen Dimitrov. “The richest to poorest ratio in Bulgaria is over 8 times, a 23 billion Leva resource is concentrated in richest 5%. We are seeing a middle class that is growing poorer and poorer,”  he said.