December 16, 2016

The high-tech business opposes the changes in tax and regulatory environment in Bulgaria

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Professional associations of the high-tech sector in Bulgaria – Bulgarian Outsourcing Association, BASCOM, BAIT, ICT Cluster and automotive cluster sent an open letter to representatives of the executive, legislature, and leaders of major political parties, which expressed its firm position against returning to the public subject to change taxation in Bulgaria. The opinion states that need joint efforts of all parties involved in support of the established long-term predictable and stable regulatory and tax environment in the country. ScaleFocus is proud to be part of this revolutionary step by being a dedicated member of Bulgarian Outsourcing Association and BASSCOM.

The companies stress that the financial and social stability are only possible with a sustainable business environment that provides the main economic indicators: employment, earnings, tax collection and social security, standards and stability of the balance of payments by encouraging exports. Data show that these industries are becoming structure of the Bulgarian economy, thanks to the increasing strengthening of the implementation and operation of high technology. Evidence of the trends are the number of employed staff who are more than 5-6% of the workforce in the country, and the high rate of growth in the amount of wages and salaries.

Today, high-tech companies in the country form the bulk of the country’s GDP – in 2015 this contribution amounted to over 8% for outsourcing, software development, information technology and 4% of the automotive industry. The continued presence of the topic to raise taxes in Bulgaria will lead to a strong outflow of investment, which will lose all directly affected will be individuals and households, says the opinion. An additional risk is the other countries of Central and Eastern Europe to impose a more attractive destination for investment and business.

In addition, the leading high-tech sector expressed their readiness for long-term partnership with the state to upgrade establishing a favorable business and tax environment.

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