TAX REVENUE POTENTIAL IN BULGARIAN MUNICIPALITIES

All Bulgarian municipalities provide public services to their population. Some of the services are financed through subsidies by the central government, but others are financed by their own revenues. In order to have financial stability, it is necessary to have sufficient revenues in the municipal budgets. One of the main revenues with a big share is from local taxes. The purpose of this article is to assess whether municipalities in Bulgaria are using their tax revenue potential and whether there are any missed revenue opportunities. The focus of the analysis is on the collection of local taxes and an assessment of the level of tax rates in the municipalities. The conclusion provides recommendations for changes in the tax policy at the local level led by the municipalities.