Page 130 - bne IntelliNews SE Outlook Regions 2024

The revenue from indirect taxes is seen rising by 2.9% in 2023, 3.7% in 2024 and 3.3% in 2025.
Bosnia’s government sector foreign debt increased by 5.5% year on year to BAM9.34bn (€4.78bn) in the second quarter of 2023, according to the latest available central bank data. The country’s debt to the European Investment Bank (EIB) increased by 2.3% y/y to BAM2.18bn, while that to the European Bank for Reconstruction and Development (EBRD) moved up by 0.7% y/y to BAM1.07bn.
According to the central bank data, the government sector's liabilities to the World Bank’s IBRD decreased 1.4% y/y to BAM1.2bn, while the debt to the World Bank’s IDA moved down 17.9% y/y to BAM1.24bn. The debt to the International Monetary Fund (IMF) fell by 9% y/y to BAM847.55mn, while liabilities to the European Commission decreased by 30.8% y/y to BAM264.04mn.
6.3 Budget and debt - Bulgaria
Bulgaria will aim for a 3% budget deficit in 2024 in order to get the green light for eurozone entry in January 2025. Revenue is planned at BGN77.6bn, while spending is seen at BGN83.8bn. The government also plans to keep unchanged the debt-to-GDP ratio at 23.8%. The capital spending in the 2024 budget is increased by 50% to BGN12bn (€6bn).
To secure funding for the increased spending on pensions, wages and capital expenditures, the government proposed a set of tax changes. The amendments concern VAT, corporate taxes, the tax on personal income and taxes collected by municipalities.
Lawmakers agreed to extend the zero VAT on bread and flour until mid-2024, as well as to keep the 9% VAT for the hospitality industry until the end of 2024. If a restaurant does not issue a receipt, the client will not pay the VAT on his or her bill.
Corporate profit tax is increasing to 15% for large EU-registered companies and multinational groups. The change would align Bulgarian legislation with a regulation of the European Commission seeking to ensure a global minimum level of taxation for multinational enterprises and large-scale groups. The 15% profit tax rate would be applied to companies with an aggregate annual revenue exceeding €750mn per year.
Amendments to the personal income tax introduce a tax bonus for cryptocurrency trading in order to make these turnovers official. For income from the sale or exchange of financial assets, foreign currencies and cryptocurrencies, statutory expenses of 10% are introduced.
Bulgaria reported a consolidated budget deficit of BGN1bn (€510mn) in the first nine months of 2023, equalling 0.6% of the projected end-year
130 SE Outlook 2024 www.intellinews.com