Институт за пазарна икономика http://ime.bg/en/articles/reducing-the-administrative-burden-in-eu-it-is-possible/ Administrative burden - the part of the administrative expenses of a business caused only by legal obligation. 2010-02-08 http://ime.bg/en/articles/you-will-watch-them-because-they-are-made-in-the-eu/ Some time ago the European Commission boasted about a report saying that tree quarters of the television time is taken by European films and broadcasts... 2010-02-08 http://ime.bg/en/articles/do-not-raise-the-deficit/ This week the Bulgarian President became spokesman of the creeping rehabilitation of the “virtues” of budget deficits. It seems that the Prime Minister and his colleagues see political advantages in this idea and are keen on softening the fiscal policy too... 2010-02-08 http://ime.bg/en/articles/old-subsidies-with-a-new-railway-chord/ The State Railways succeeded to attract much attention in the first days of the New Year. Fist, the strike of railway workers led the Ministry of Finance to transfer the subsidy rapidly in January totaling 13.3 million, but last Wednesday the Council of Ministers decided to increase capital by 24 million to enable the State Railways to pay off government-guaranteed loans... 2010-02-08 http://ime.bg/en/articles/bulgaria-the-country-with-two-faces/ Undoubtedly, this week was marked by the passions around Rumyana Jeleva’s hearing at the European Parliament. The general conclusion among the media and the public was that the incident is yet another shameful stain on the reputation of Bulgaria to Europe and worldwide. This is not far from the truth. Yes, it is required to disclose all information in her declaration of property until she was MEP and it was not done. A rule – broken... 2010-02-08 http://ime.bg/en/articles/on-crafts-or-the-story-of-a-shoemaker/ Imagine you are a shoemaker. You decide to open a small workshop and to earn your living through the best that you can do. You win customers and who reward your skills more often. You work hard, pay your taxes and your clients are satisfied. One day a group of strangers enters your workshop... 2010-02-08 http://ime.bg/en/articles/social-security-payments-rather-than-the-vat/ During the week there was active discussion during the week whether and how to reduce the VAT in Bulgaria: a more drastic 2-percent reduction from the next year or 0.5 percent every 6 months? The news for lowering taxes should sound good, but in case there is an alternative that is far more attractive. If we tear down taxes, then let us focus on the most problematic ones, namely those on labor... 2010-02-08 http://ime.bg/en/articles/new-ime-campaign-state-expenditures-in-bulgaria/ The Institute for Market economics started a new campaign at the beginning of 2010, attempting through observation and analysis to asses the transparency, soundness and efficiency of public expenditures. The long term objective is to reduce the cost of government and more freedom for citizens. 2010-02-08 http://ime.bg/en/articles/tax-freedom-day-late-during-the-crisis/ June 1 2010 is the day on which we will stop working for the state and start working for ourselves – more precisely at 16 hours and 23 minutes on Tuesday (1 June 2010). In 2010 Bulgarians will work for 5 months to pay various taxes and duties, i.e. to fill state treasury. The so-called “Tax freedom day” in recent years occurs at the end of May but in 2010 it will move to June. 2010-02-08 http://ime.bg/en/articles/bg-remittances/ Part of disposable income in each country comes from funds earned in another country and sent or brought home. The difference between money received from abroad and paid to foreigners determines whether a country is a net exporter or importer of labor. As it could be expected, these flows have the largest positive values (as % of GDP) in less developed countries where emigration and seasonal employment in other countries are most significant*... 2010-02-08 http://ime.bg/en/articles/lost-in-transportation/ This week at a meeting of the Budget Committee in the Municipality of Sofia, councilors have discussed the problems of urban transport. Again the main topic is the financing and ineffective work in providing public transportation in the capital. The focus of discussion has fallen on the question of preferential public transportation, as the proposal now is to reduce such. Bravo! 2009-12-17 http://ime.bg/en/articles/tax-breaks-equal-to-the-sailors/ In principle, people are equal (as it comes to law or the state), but again it appears that some are more equal than others. Just this week quite unexpectedly the Parliament adopted the reduction of income tax for the seafaring profession, particularly from 10% to 1% of the income. 2009-12-17 http://ime.bg/en/articles/a-customs-trick/ Nowadays, everyone can order almost everything through Internet – you just need an Internet access and a credit card. Thus, taking advantage of this opportunity I ordered Kindle (a digital reader offered by Amazon). It came from USA to Sofia just for two days, but I realized that it’s not possible to get it in my office, and I had to go to the custom of Sofia Airport to pay duty and VAT. I didn’t have any choices and I went there – and here is the madness that happened to me: 2009-12-17 http://ime.bg/en/articles/the-messages-in-the-government-program/ Every government program is a noteworthy reading. You can compare pre-election promises with the real actions of the government at least... 2009-12-17 http://ime.bg/en/articles/an-emerging-budget-deficit/ The main task of the new government was to balance the budget. Measures for cutting down the expenditures as well as for raising the budget revenues (administrative measures mainly) have been adopted but from today’s point of view balancing the budget seems like an unreachable goal... 2009-12-17 http://ime.bg/en/articles/a-historic-farewell-to-kremikovtzi-ad/ Amid the bustle of everyday affairs the economic observers are about to overlook one of the historically most important economic events – the fact that Kremikovtzi AD has somewhat silently headed for its liquidation. 2009-12-17 http://ime.bg/en/articles/imf-s-recommendation-and-alternatives/ Compared with retirees age in the European Union, the age in Bulgaria comes a few years earlier. Would be illogical people in our country to work less, so it makes sense people in Bulgaria to retire later than it is now... 2009-11-02 http://ime.bg/en/articles/the-minimum-capital-requirement-has-been-finally-removed/ A few weeks ago, a law amendment was passed, which results in a change of the minimum capital requirement for companies to the symbolic 2 Leva (1 Euro)... 2009-11-02 http://ime.bg/en/articles/djankov-follow-saakashvili-s-example/ “Our experience shows that there would not be a place where something good could happen if government was present.” said Saakashvili. “Low and simple taxes are the biggest achievement of Georgia that attracts investors, creates new work places and gives more money to people and firms. So it is our obligation to secure the existence of that type of politics regardless of any political changes in future” 2009-11-02 http://ime.bg/en/articles/bulgarian-economy/ It is not by chance, that the spending cut announced by the new cabinet was quoted by international media (including Wall Street Journal) and drew attention to the country. It is exactly this kind of news, which is much more important, because it can bring back investors confidence, which suffered a lot from the silliness of the previous administration. The “Stanishev plan” did not achieve anything but wasting huge amount of our money. The main goal – “promoting employment” – was a failure. 2009-11-02