According to the association, pensions should also be frozen, and the preferential VAT for tourism and establishments to be abolished
VAT must be neutral. There is no crisis in the tourism and restaurant business and there are no reasons for preferential treatment. Vasil Velev, Chairman of the Board of the Association of Industrial Capital in Bulgaria (AIKB).
The association is categorically against the increase in taxes and offers freezing on salaries and layoffs, Velev said. Salaries in the public administration sector have been increased for years to come and are being cut off as net income from those in the real sector, which makes the money and fills the budget, he pointed out.
“Bulgaria’s population is constantly decreasing, human resources are decreasing, and the administration that serves the people is growing, and we have spent billions on e-government.”
AIKB is also “in favor” of freezing pensions for one year, which is an unpopular decision, the president of the association also noted. Velev cited the net replacement rate – what part of the salary of a person who is no longer working does he already receive as a pension, and emphasized that in our country it is 70% compared to an average of 64% in the EU and OECD.
“For the situation we are in, we have very generous pensions. I understand how that sounds against the background of their sheer size. Pensions are what the insurance contribution is, otherwise absolute injustice results. In our country, pensions and social assistance are confused.”
AIKB also disagrees with the increase of the minimum wage. The formula in the Labor Code is wrong and contradicts international law, commented Vasil Velev. According to him, if someone attacks her before the Constitutional Court, she will drop out.
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