Income inequality in Bulgaria over a 30 year-period has been lower than the global average, but since 2014 it has been higher than the average levels in the EU, reads an analysis by the Economic and Social Council, the BNR’s reporter Tsvetelina Stoyanova informed. To address the imbalance between high and low incomes, the Economic and Social Council recommends that wages should be formed adequately by introducing a fair tax and social security system and taking measures to combat the grey economy.

After 35 years of transition, Bulgaria remains a developing country with an aging and declining population. Two-thirds of households have incomes below the subsistence level, and nearly one-third live below the poverty line. The country continues to rank last in the EU in terms of income. Possible tools to reduce income inequality include introducing a non-taxable minimum, progressive taxation and setting the minimum wage closer to the cost of living.

Published and Tranalsted by Kostadin Atanasov

Photo: BGNES