BSP pushes for higher dividend tax to fight corruption

Bulgaria will double its dividend tax rate from 5% to 10% under a budget agreement aimed at curbing wage payments made outside official channels, according to Dragomir Stoynev from the Bulgarian Socialist Party. The deputy speaker of parliament told Bulgarian National Radio that businesses have exploited the gap between standard income taxes and lower dividend rates by distributing cash envelopes to employees while avoiding payroll obligations. His party supports the 2026 spending plan, which allocates 5% raises for public workers to match inflation and boosts compensation for physicians at all career stages.

Pension benefits will climb between 7% and 8% starting July 1 through application of the Swiss formula, while maximum payments remain capped to address imbalances with minimum stipends. Retirement ages will continue rising only according to schedules enacted seven or eight years ago. Regarding fuel supply concerns, Stoynev defended the export prohibition on diesel and aviation products as essential protection against shortages. His coalition wants 10 to 15 managers installed at Lukoil Bulgaria’s Burgas facility rather than one individual, with legislative amendments expected from governing parties during the coming week.