The ruling GERB party claimed that employers are in favour of a higher VAT rate, but employer organisations denied this, insisting that no such proposal had ever been made.

This clarification followed a meeting between GERB leader Boyko Borissov and the leaders of Bulgaria's two largest trade unions (The Confederation of Independent Tradeunions in Bulgaria CITUB and KT "Podkrepa"), as well as government officials, including Finance Minister Temenuzhka Petkova and Denitsa Sacheva, Chair of the Parliamentary Social Committee.

Sacheva explained that the idea, allegedly suggested by employers, to raise VAT instead of social security contributions, does not have political support within the coalition.

Stanislav Popdonchev of the Bulgarian Chamber of Commerce, representing employers, strongly denied proposing a VAT increase, describing such a measure as “highly inflationary” and emphasising that it was never discussed with the Ministry of Finance. Last week, business groups described the 2026 budget as inadequate.

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