NEWS + ANALYSIS
GEORGI VULDZHEV

NEWS + ANALYSIS

HOW WE ACHIEVED VICTORY IN BULGARIA’S "WAR ON CASH"

December 21, 2017 | by Georgi Vuldzhev

On September 14, 2017, Bulgaria’s Finance Ministry tabled a proposal to lower the upper limit on cash payments to 5,000 Bulgarian levs (the equivalent of EUR 2,500 or USD 3,000) from 10,000 levs as part of an overall tax reform package related to VAT and some excise taxes. Cash restrictions of such scope would lead to significant changes for many Bulgarians, who still mostly rely on cash payments for many of their purchases, like second-hand car sales. The justification given for why such tightening of existing financial regulations was needed, however, was that it would reduce the size of the shadow economy and bring in more tax revenue.

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