The reduction of corporate tax in Bulgaria to 10 per cent would turn the country into “a leader in Europe”, Petar Dimitrov, chairperson of Parliament’s committee on the budget and finance, told Focus news agency.

Bulgaria would become a “magnet for investors,” Dimitrov said.

Cyprus was the only EU country where the tax rate was as low.

Bulgaria achieved good economic results and budget surplus. Otherwise it would not be able to afford this kind of corporate tax reduction, Dimitrov said.

Bulgaria’s state budget income would decrease by a third because of the corporate reduction, Dimitrov said, but it would hopefully bring the grey economy into the light.

Thus more investors would be interested in Bulgaria, he said.