BSP-United Left supports windfall tax on banks' profits

Bulgarian Socialist Parry - United Left will support the taxation of banks' excess profits and the introduction of a tax on concessions, Dragomir Stoynev, a MP from BSP-United Left, said on November 12 after a meeting between representatives of the political formation and caretaker Minister of Finance, Lyudmila Petkova, regarding the state of public finances and the 2025 budget.

He explained that BSP-United Left proposed specific measures for the Ministry of Finance to consider and possibly include in the 2025 budget He added that they recommend looking into options for levying capital exports to parent companies.

"This year, we anticipate staying within the 3% deficit, which is commendable, but the challenge lies in the upcoming year," Stoynev commented.

He explained that decisions regarding the financial sector and the budget, made by the National Assembly, are piling up, with the 2025 budget being their primary concern.

“More than ever, the country needs political stability, as a crisis could truly happen. If no specific measures are taken, the situation could spiral out of control," he added.

"More than ever, the country needs to have political stability because catastrophe can indeed happen. If concrete measures are not taken, things could spiral out of control," the MP said.

Rumen Petkov, leader of ABV party from the left coalition pointed out that the first measure they support - taxing banks' excess profits - will bring more than 200 million BGN in additional revenue. On the second measure, he explained that it was about abolishing the concessions and imposing a tax, which would mean an additional revenue of more than 500 million, while currently the state received 100 million from all its property. As a third measure, Petkov pointed to very strict controls on the export of capital abroad by retail chains and banks.

Asked about the measures they had heard at the meeting from the Finance Minister for Budget 2025, the BSP-United Left MP said that eventually there would be an income policy, which concerns all incomes to increase by 10%, and a freeze on some promised incomes was also proposed.

Caretaker Finance Minister, Lyudmila Petkova, did not speak to the media after the meeting. The BSP-United Left did not say whether the measures proposed by the Finance Ministry included an increase in pension contributions.

Asked whether they would respond tomorrow to GERB-UDF's invitation for a meeting, BSP-United Left chairman Atanas Zafirov said they would have a meeting of the BSP's executive bureau and then a coalition council.

"After that, the parliamentary group will meet and we will have positions on all the issues you raised," he added.