One of the main positive results from the introduction of a flat tax in Bulgaria would be an increase in salaries and improved tax collection.

Accounting specialist Svetlana Naidenova said, as quoted by investor.bg, that one of the flat tax advantages was its low rate of 10 per cent and its easy administration, which meant lower costs.

So far, 15 countries in the world have introduced a flat tax. Macedonia, Montenegro, Mongolia and Iceland are among the countries to most recently introduce a flat tax.

The flat tax rate in Iceland is 35.7 per cent, in Lithuania, 27 per cent and in Latvia, 25 per cent.

Only Mongolia and Kyrgyzstan have a flat tax of 10 per cent. Macedonia has 12 per cent flat tax rate, Romania, 16 per cent and Russia, 13 per cent.

One of the negative consequences of the flat tax is that incomes of up to 350 leva would have higher a tax rate than the current one, Naidenova said. A possible solution to the problem could be to maintain a minimal non-taxable income or flat tax postponement until incomes in Bulgaria increase as a whole.

It is still unclear whether people with lower labour efficiency and families with children would continue receiving tax concessions.