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Finance Ministry Proposes Higher Child Tax Relief, New Taxes on Windfall Profits, Powerful Cars

bta.bg · 21h · first reportShare

The Finance Ministry is proposing a package of tax changes that would raise child tax relief, introduce a new allowance for spending on children’s healthcare, education and sports, increase the VAT registration threshold and impose new taxes on windfall profits and high-powered cars, Deputy Finance Minister Ludmila Petkova said on Wednesday. Under the proposed amendments to the Income Taxes on Natural Persons Act, the annual tax relief for one child would increase from BGN 6,000 in 2026 to EUR 5,000, for two children from BGN 12,000 to EUR 8,000, and for three or more children from BGN 18,000 to EUR 11,000. The relief for a child with disabilities would rise from BGN 12,000 to EUR 10,000. A new child development tax relief is also proposed for working parents’ spending on children’s healthcare, education and sports. Up to EUR 2,000 for one child, EUR 4,000 for two and EUR 6,000 for three or more children could be deducted from the annual tax base, Petkova said. Among the proposed VAT c