Upcoming Eu member Bulgaria lowers corporate tax by 30 per cent

dpa German Press Agency
Published: Thursday October 12, 2006

Sofia- Bulgaria has lowered the corporate tax rate from 15 to 10 per cent starting in 2007, when the country joins the European Union membership, the parliament decided Thursday. While the 30-per-cent cut would create a 290 million leva (185 million dollars) hole in the state budget, it is also expected to generate revenue by luring new investments and draw a part of the grey economy into the open.

Despite gaining EU membership next year, Bulgaria remains one of Europe's poorest countries.

In 2005, the per capita income was an estimated 9,600 dollars, salaries floated around 300 dollars per month, the unemployment rate was 11.5 per cent and 13.4 per cent of the 7.4 million inhabitants were living below the poverty line.

© 2006 dpa German Press Agency