The high-tech industry held meetings with three ministries in an effort to prevent an increase in the insurance burden for the sector

Associations representing the high-tech industry in Bulgaria – BASCOM, AIBEST, BAIT, ICT Cluster, and BRAIT – united behind a firm position against increasing the maximum insurance income.

Representatives of the organizations held meetings with ministers and teams from the Ministry of Economy, the Ministry of Labor and Social Policy, and the Ministry of Finance to defend their employees' incomes.

At the Ministry of Labor and Social Policy and the Ministry of Finance, they received assurances that no changes to the tax framework and the level of the maximum insurance threshold would be undertaken at this time. If such a measure is ever taken in the future, it will happen only after extensive consultations with industry organizations, as well as a serious analysis of the impact and long-term consequences on the tax and insurance system and the state budget.

During the meeting at the Ministry of Economy, representatives of the innovative business received full understanding and support for their arguments.

At all three meetings, the high-tech sector emphasized the contribution of the companies it represents to the budget, as well as the added value for the development and digitalization of the Bulgarian economy. It is unacceptable for employees in innovative companies to constantly be “punished” with higher taxes and contributions, instead of being supported as a successful model for education, professional realization, and personal development. It is perplexing that shadow businesses, which clearly hide revenues, continue to be tolerated by the state while being silently encouraged to pay minimal taxes and contributions.

The innovative industries reminded that due to the official elimination of BRAIT from the National Council for Tripartite Cooperation, the business is completely unrepresented at the negotiating table. In this regard, the united associations insisted on regular dialogue with the three ministries to avoid hasty and harmful decisions for the sector. They also called for consideration of the fact that when financial issues are included in public discussions by official state representatives, even if there are no specific subsequent steps, the messages to foreign investors are strongly negative and unambiguous – indicating chaos, political and investment risk, and unpredictability. They insisted on a comprehensive review of the commitments in the insurance system to enhance the adequacy of insurance packages.

In a constructive spirit, the meetings also discussed a number of other issues crucial for the development of the ecosystem and entrepreneurship in Bulgaria, such as accelerating the procedures for issuing blue cards, supporting the sector's efforts in education and workforce development, as well as the expansive digitalization of the economy.