A bill restricting cash payments to amounts not exceeding BGN 15 000 is to be adopted by the Bulgarian government.

On January 13 2011, when the bill was passed at its first read, the Parliament voted that amounts exceeding BGN 5 000 must be paid only through bank transfers along with work wages. The main argument was that this measure could VAT frauds and unregulated salary payments in the gray economy.

However, the Ministry of Finance and MPs from the ruling centrist GERB agreed on increasing the maximum sum allowed for cash payments to BGN 15 000 before the second reading. The Bulgarian National Revenue Agency, which has been demanding that such measure should be enforced for several years now, has also agreed with the proposed increase.

The initially proposed BGN 5 000 limit would have caused inconveniences for the citizens trying to purchase second-hand cars and domestic appliances, according to a Bulgarian expert from the Institute for Market Economy.

The proposition that all salaries should be payed only through debit cards has not been included in the final bill. The measure has been deemed by some of the GERB MP as ineffective as far as restricting the gray economy goes. Furthermore, it will cause difficulties in places where there are not enough banks functioning.

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