Energy Minister: A balanced solution is being sought on the issue of the tax on underground resources

Acting Minister of Energy Vladimir Malinov said that a balanced solution is being sought on the issue of the proposed introduction of a tax on the extraction of underground resources. At a briefing at the Council of Ministers, Malinov said that there is a constructive dialogue with the Bulgarian Mining and Geology Chamber, as well as with the unions on the topic of the new revenue measure included in the draft budget for next year.

We will continue to work on finding a balanced solution that will be acceptable to the affected parties, namely the concessionaires who extract natural resources within the meaning of the law. But also a solution that satisfies the general macro framework of the budget for 2025, Malinov pointed out.

"We have an understanding on both sides that this topic must be closed today so that the government can submit the budget to the National Assembly tomorrow," he added.

The introduction of a new tax on underground resources risks closing the mining industry, the Bulgarian Mining and Geological Chamber warned. This morning, miners gathered in protest in front of the Council of Ministers, declaring themselves against this measure.

Early this morning, in protest against the proposal for an additional tax on mining companies of 900 million leva next year, the machine capacities of "Asarel-Medet" in Panagyurishte were turned off. For the first time since its establishment, the company for mining and processing of copper ore has stopped work "until further notice".

"If this proposal is accepted, it will be devastating for our industry, which we want and have the right to protect," the company is categorical. They testify that the issue was not discussed in advance with either the employers' organizations or the miners' unions.

"If the new taxation is introduced, in addition to the concession fee and profit tax, the company will be unable to bear this burden and will be forced to stop all its investments and innovations, as well as to review its established social policy for workers and for the development of the municipality. Such taxation does not exist in any of the European countries and this is an attempt to unfairly treat our industry, which will be uncompetitive with mines in other countries," Assarel-Medet also says.

Around 1,000 workers, organized by the Federation of Independent Miners' Unions under the Confederation of Bulgarian Trade Unions and the Trade Union Miners' Federation of the Podkrepa Confederation of Trade Unions, protested in front of the Council of Ministers building today.

The Bulgarian Mining and Geological Chamber also distributed an open letter yesterday. Its members are also united around the position that a new additional tax on underground resources risks closing down the mining industry. The Bulgarian Chamber of Mines and Geology also believes that the principle of equality and non-discrimination in the introduction of tax obligations has been violated. They are categorical that such proposals would negatively affect the investment climate and business environment in our country in a period of economic uncertainty, in a period of increasing stagnation on a regional and global scale and in the need for our country to preserve strategic sectors with significant added value.

The American Chamber of Commerce in Bulgaria also declared itself against the proposed additional tax burden on strategic sectors for the Bulgarian economy, such as the mineral and raw materials industry. The AMC sent its position to the Speaker of Parliament, the Prime Minister and the Ministers of Energy and Economy.