Income taxation would decrease by two per cent but at the same time health insurances would rise from six to eight per cent of the income.

Ruling parties were considering such changes to social policies, Novinar newspaper reported.

In this manner the overall taxation would not change but healthcare funds would increase. The Finance Ministry’s evaluation of the proposal is expected.

Health Minister Radoslav Gaidarski supports the idea.

Ten days ago the supreme council of the Bulgarian Socialist Party (BSP) decided to keep the health insurances at the current levels. This was one of the election promises BSP made, Novinar reported.

The ruling coalition also discussed a decrease in corporate taxation from 15 to 12 per cent. VAT values were problematic. The ruling coalition was still searching for the proper formula that would guarantee VAT income but would not harm companies.