CRIB Breaks with CITUB Over proposed Tax Hikes

“With their damaging political proposals for drastically raising taxes and insurance, CITUB is moving from the destruction of social dialogue to its complete breakdown!”

This statement comes from CRIB Chairman Kiril Domuschiev, responding to CITUB’s proposals for a considerably increased tax burden on Bulgarian businesses. Here’s a closer look at his concerns.

“They aren’t acting as a union that should protect workers’ income and create opportunities for high-paying jobs. Instead, they’re behaving like a radical political organization aiming to seize income from both workers and entrepreneurs and funnel it into the central budget.”

Domuschiev argues these proposals will stifle growth, freeze investment, and discourage job creation. Combined with CITUB’s support for expanding the public sector – already larger than the OECD average – he warns Bulgaria could face a Romanian-style inflation and debt crisis!

CRIB has issued a formal position and recommendations to its members. The leading employer organization in Bulgaria is ending its partnership with the union and advises its members to do the same.

“Given CITUB’s recent proposals and consistent push for a drastically increased tax burden on Bulgarian businesses, particularly the middle class, the CRIB board recommends the following to its member companies:

• Suspend meetings with CITUB on topics like employee qualifications, labour market discussions, the business environment, tax issues, and insurance – accept for those explicitly part of ongoing CRIB-CITUB partnerships like “Social partnership and Human Resources,” “Distinct Partnership,” and the “Respower” and “CRIB Project” Social Partnership, Human Resources Development Programs.
• Clearly explain to employees the potential negative impact on their income and investment opportunities in Bulgaria if these tax and insurance increases are implemented.
• Until CITUB ceases its attacks…