Public officials earning less than 430 leva a month will get a one-time payment to recompense for the introduction of a 10 per cent flat tax as of January 1 next year, 2008 budget bill reads.

The bill will be on the agenda of the tripartite council on October 29 and of the council of the ruling coalition one day later.

The payment will vary according to the size of the salary and will match the income an individual would have earned if no flat tax was in effect.
The flat tax system waives the non-taxable income threshold and will ensure tax discounts – at 10, 25 and 40 per cent – for certain categories of tax persons.

Sole proprietors will be levied a 15 per cent flat tax.

Salaries and pensions will be hiked by five and 10 per cent, respectively, for public officials and 9.5 per cent for pensioners.
Among other items in the bill will be the hike of excise on cigarettes. It will be the first in three increases designed to level Bulgaria's with excises in the EU.

The bill draws on a weighted average inflation of 6.9 per cent, current account deficit of 21.9 per cent and budget surplus at 3 per cent of GDP.