The government of Prime Minister Rumen Radev is introducing a series of tax increases six months after he pledged that taxes would not be raised, as surveys show declining support for the administration.

Radev made the pledge on January 30, 2026, saying, "Taxes must not and will not be raised." Members of the Progressive Bulgaria party repeatedly reiterated the position after its strong performance in the elections.

The government's approach changed in late September, when the Ministry of Finance announced plans for new taxes on the "excess profits" of banks, telecom companies and other businesses during a briefing. Discussion later also focused on a proposed fine concerning non-domestic rakia, or fruit brandy.

The announcements triggered widespread negative reactions. Economists warned that the additional tax on banks' "excess profits" could eventually be passed on to consumers.

The changes were announced as a Market Links survey showed that confidence in the government had fallen for a third consecutive month.

The measures include tax increases alongside expanded tax relief for parents with children.

One of the main proposals is an additional 33% tax on "excess profits" earned by banks, insurers, telecom operators, large retail chains, payday lenders and currency exchange bureaus. This proposal has generated the strongest reaction.

The alternative tax on gambling is also set to rise, covering slot machines, gaming tables and gaming equipment. From 2028, land-based gaming halls and casinos will move to monthly taxation with a fixed minimum. Annual contributions for socially responsible practices will also increase.

The maximum value of food vouchers will rise, but the vouchers will be subject to a new 7% tax.

Property tax valuations are planned to double over the next three years, bringing them closer to market values and expected to result in higher property taxes.

The so-called "weekend tax," which applies when company assets are used for personal purposes, is set to rise from 3% to 7%.

At the same time, the government plans to increase tax relief for families with children and introduce a new relief measure related to child development.

The social security contribution ceiling was increased to €2,300 on August 1, meaning people with higher salaries now pay more in social security contributions.

A separate proposal concerning homemade rakia has also drawn strong criticism. Fines could apply when the drink was produced by another person and stored outside that person's household, with penalties starting at €1,000.

Critics say the additional government revenue that could result from the measures does not justify the increase in spending.

The tax changes come as support for Radev's government has already been declining. Surveys by Market Links and Alpha Research have indicated since July that backing for the administration was falling.

A new Market Links poll released last week put government support at 39% in September, down from 42% in July. Distrust rose over the same period from 35% to 40%.

"This administration is beginning to lose public support. Economic fears are running very high," Market Links Executive Director Dobromir Zhivkov said.

Zhivkov said the trend was not linked to one particular event but reflected growing concerns about people's material standing. He said those concerns were increasing alongside higher oil prices and expectations of a further rise in inflation.

He also said it was difficult to establish a direct connection between the survey results and the tax changes.

Negative reactions to the measures have nevertheless emerged.

Economist and former Democratic Bulgaria MP Georgi Ganev told Veselin Dremdzhiev that the government was searching urgently for additional revenue, saying, "There is a desperate search for revenue underway."

The additional taxation of banks has been among the most controversial proposals, drawing criticism from political and economic analysts.

Dimitar Radev, Governor of the Bulgarian National Bank, said higher taxes on bank profits could result in more expensive and less accessible credit, lower private investment and increased government financing costs.

He argued that the consequences would therefore shift part of the burden onto citizens.

The Ministry of Finance rejects that assessment, maintaining that the tax itself does not give banks grounds to increase prices for their customers.

Lyubomir Datsov, a member of the Fiscal Council and former Deputy Minister of Finance, called the new tax a "mockery" in an interview with bTV. He argued that the government was seeking higher budget revenues without making sufficiently substantial spending-side optimizations.

The proposed rakia fines have also prompted criticism and public and political commentary. The issue led to a press conference by Finance Minister Galab Donev, who said the law would not actually be enforced and that people had no reason to worry.